3 Reasons Tesla's Post-Earnings Hangover Looks Like a Buy

Group 1 - Tesla's stock experienced a 5% decline after a recent earnings report, but this is seen as a reset rather than a rejection, following a 50% gain since April [1][2] - The earnings report revealed a nearly 12% year-over-year revenue decline, but earnings per share met expectations at 40 cents, and margins improved compared to Q1 [2][4] - The stock bounced off a key trendline, indicating a bullish technical pattern, suggesting a potential breakout in the near future [3][7] Group 2 - Despite the revenue decline, Tesla's vehicle deliveries increased from Q1, and the company remains on track for its next-gen affordable EV launch in the second half of 2025 [4][5] - Analysts maintain a bullish outlook, with Wedbush holding a $500 price target and Canaccord Genuity raising its target to $333 following the earnings report [9] - Tesla's CEO, Elon Musk, emphasized the company's autonomy roadmap, including plans for a robotaxi rollout by the end of 2025, reflecting a shift towards a software-and-services model [10][11] Group 3 - The current P/E ratio is above 180, indicating high expectations, but Tesla only needs to show consistent progress to maintain upward momentum [12] - A potential move back towards $340 could signal a major breakout for investors, especially considering the stock's previous 60% rally after a disappointing Q1 report [13]