Tesla (TSLA) Stock Slides as Model Y L Fails to Excite Wall Street

TLDR

• Tesla started production of the Model Y L (long wheelbase, three-row, six-seat), launching at ~$62,000
• TSLA was down 1.1% in premarket at $396.61, extending a 4% drop from Tuesday and sitting ~10% down year-to-date
• Q2 deliveries came in at 480,126 vehicles, roughly 70,000 above Wall Street estimates and up 25% year-over-year
• Investors are focused on AI, robotaxis, and Optimus — not EV sales; the robotaxi service now operates in three states
• RBC raised its price target to $500; consensus sits at “Hold” with an average target of $408.52

Tesla (TSLA) stock was trading at $396.61 in premarket Wednesday, down 1.1%, after another rough session Tuesday that saw it fall 4%. The stock is now down about 10% year-to-date, even as the company rolls out fresh product news.

Tesla, Inc., TSLA

Tesla has begun production of the Model Y L — a three-row, six-seat version of the Model Y with a long wheelbase. The launch version starts at around $62,000, roughly $4,000 more than the performance Model Y. The base Model Y starts at about $39,000.

The Model Y L was originally launched in China. Bringing it to the U.S. market could give sales a lift, but the market isn’t reacting to it.

EV Sales Aren’t the Story Anymore

Tesla just came off a strong Q2. It delivered 480,126 vehicles — about 70,000 more than analysts had penciled in and up 25% compared to the same quarter a year ago. Despite that beat, the stock has been sliding since the delivery report dropped.

The reason is simple: investors aren’t looking at car sales right now. They’re watching the AI and autonomy side of the business.

Tesla launched its robotaxi service in Austin, Texas around a year ago. It has since expanded to Miami and now operates across three states. The market is waiting for that business to start generating real revenue. Investors are also keeping an eye on Optimus, Tesla’s humanoid robot. The company is working on a third version of the bot.

On the earnings front, Tesla reports Q2 results on July 22. Last quarter, it posted $0.41 EPS, beating the $0.39 estimate. Revenue came in at $22.39 billion, slightly below the $22.96 billion estimate, but up 15.8% year-over-year.

Analyst Targets and Institutional Activity

Wall Street is split. RBC raised its price target to $500 and kept an outperform rating, pointing to potential upside from a possible SpaceX merger. UBS also has a $500 price target.

The consensus across analysts sits at “Hold” with an average target of $408.52. Of 45 analysts tracked, 21 rate it Buy, 20 Hold, and 4 Sell.

On the institutional side, Jericho Financial LLP increased its Tesla position by 13.4% in Q1, adding 1,469 units to bring its total to 12,452 — worth about $4.63 million.

Insider activity leaned toward selling. Director Kathleen Wilson-Thompson sold 26,409 units at an average of $378.11 on April 30. CFO Vaibhav Taneja sold 3,000 units at $450.00 on May 13, with that sale tied to tax obligations from vesting equity. Total insider sales over the past 90 days come to 32,015 units worth approximately $12.38 million.

Tesla’s P/E sits at 369.63 with a market cap of $1.51 trillion. Its 52-week range is $293.55 to $498.83.

Tesla is set to report Q2 earnings on July 22.

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