Tesla ETFs in Focus Ahead of Q2 Earnings

Core Viewpoint - Tesla is set to report its Q2 2025 earnings on July 23, with recent performance showing a 56% increase over the past three months, surpassing the industry's 28.8% growth, although the earnings outlook appears bleak [1][4]. Financial Performance - Tesla has an Earnings ESP of +0.21% and a Zacks Rank of 4 (Sell), indicating a challenging earnings environment [3]. - The Zacks Consensus Estimate predicts a significant year-over-year earnings decline of 23.1% and a revenue decline of 11.8% for Q2 [4]. - The company has missed earnings estimates in three of the last four quarters, reflecting a poor earnings track record [4]. Delivery and Production Numbers - Tesla reported a total of 384,122 vehicle deliveries in Q2 2025, marking a 13.5% decline from the previous year, the worst year-over-year decline in the company's history [6]. - The company produced 410,244 vehicles during the same quarter [7]. Market Position and Competition - Tesla is facing increased competition in the EV market, particularly from next-generation EVs from Chinese automakers, and is experiencing a decline in market share [11]. - The launch of Tesla's driverless robotaxi service in Austin, TX, represents a strategic pivot amid declining vehicle sales and investor criticism [8][9]. Analyst Recommendations - Tesla has a Wall Street analyst recommendation average of 2.87 on a scale of 1 to 5, with 12 firms rating it as Strong Buy and 2 as Buy [5]. - The average price target for Tesla, based on short-term projections from 34 analysts, is $296.59, with a range from $115.00 to $500.00 [5]. ETFs in Focus - Several ETFs with significant allocations to Tesla include Simplify Volt TSLA Revolution ETF (TESL), Consumer Discretionary Select Sector SPDR Fund (XLY), The Nightview Fund (NITE), Fidelity MSCI Consumer Discretionary Index ETF (FDIS), and Vanguard Consumer Discretionary ETF (VCR) [2][12][13].