Tesla’s Q2 deliveries on track for another poor quarter: Wells Fargo

June 10, 2025 09:21 PM AEST | By Investing

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Tesla’s Q2 deliveries on track for another poor quarter: Wells Fargo — Image source: Kalkine Media

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Investing.com -- Wells Fargo analysts maintained an Underweight rating and $120 a share price target on Tesla (NASDAQ:TSLA) in a note on Tuesday, stating that the company’s Q2 deliveries are "on track for another poor quarter."

Global deliveries in May were "trending 23% lower y/y," with Q2 quarter-to-date (QTD) figures down "21% lower y/y."

All three key regions—North America, Europe, and China—are said to be experiencing double-digit percentage declines, with Europe being the most significantly impacted.

Wells Fargo (NYSE:WFC) notes that the "fundamentals of the core auto business continue to weaken."

While "order’ pricing on the website appears stable over the LTM," the firm points out that "aggressive financing promotions continue to act as price cuts."

The bank believes this, combined with lower leverage, poses a risk to Q2 margins.

Despite "most investor attention" being directed at the June 12 Austin Robotaxi deployment, Wells Fargo doubts "the likely limited debut will be enough to overshadow the poor fundamentals."

In North America, Tesla deliveries are "13% lower QTD y/y," according to the bank. Factors contributing to this decline include "EV demand dwindling, albeit steadily," "Increased EV competition," and "Tarnished brand perception related to Musk’s political activities."

Europe is a "glaring concern," with Q2 QTD deliveries trending "42% lower y/y," and year-to-date figures down "37% lower," said Wells Fargo.

May saw an overall 29% year-over-year decline in Europe, driven by "10 of the 11 countries posting high double-digit delivery contractions," including France, Portugal, and Sweden with "greater than 50% contractions."

China, Tesla’s second-largest market, is "trending 22% lower QTD." Wells Fargo observes that "competition in China is beginning to take its toll on TSLA’s business," as local OEMs like BYD (SZ:002594) and Chery "continue to undercut TSLA on pricing."

This article first appeared in Investing.com

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