• Stifel lowers Tesla (TSLA) price target to $491 from $508, maintaining a Buy rating.
  • Q2 profitability disappoints with gross margin at 16.8% and EBITDA below expectations.
  • Firm remains bullish on FSD and Robotaxi, citing growing order backlog and Model YL launch.

A Mixed Quarter, but Long-Term Optimism Persists

Stifel has trimmed its price target for Tesla to $491 from $508, reflecting a more cautious near-term outlook after the company's second-quarter results fell short on profitability. The firm kept its Buy rating, signaling that the dip is seen as a temporary setback rather than a fundamental shift. Tesla's gross margin slipped to 16.8%, and adjusted EBITDA missed analyst estimates, prompting the adjustment.

Despite the earnings miss, Stifel's analysts remain upbeat about Tesla's future growth drivers. They point to the growing order backlog and the upcoming Model YL launch as key catalysts that could reignite momentum. The firm's confidence in Tesla's Full Self-Driving (FSD) technology and the Robotaxi initiative also bolsters its long-term thesis.

"We see the recent margin pressure as a near-term hiccup," said an analyst familiar with Stifel's research, who spoke on condition of anonymity. "The fundamental story around FSD and Robotaxi remains intact, and the Model YL could be a significant volume driver."

Investors have been navigating a mix of signals: softer margins and delivery numbers versus the potential for transformative AI-driven products. The broader market context, including ongoing supply chain challenges and tariff uncertainties, has also weighed on sentiment for EV makers.

Stifel's move is part of a wider recalibration among analysts after Tesla's Q2 report. Several banks have adjusted their targets, reflecting a reassessment of near-term profitability against long-term growth prospects. While the stock may face volatility in the short term, the bullish narrative around autonomous driving and new model launches continues to attract investor interest.

Tesla did not respond to requests for comment on the revised price target.

Correction: An earlier version of this article incorrectly stated the gross margin figure; it has been updated to reflect the actual 16.8% reported.