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Tesla (TSLA) is expected to report results on its fiscal second quarter on Wednesday, July 23, with a conference call scheduled for 5:30 pm EDT. What to watch for:

CHALLENGING RESULTS: On Monday, BofA raised the firm's price target on Tesla to $341 from $305, while keeping a Neutral rating on the shares following quarterly results. Tesla Q2 earnings are likely to be challenged due to tariffs and "disappointing deliveries," notes the firm, which revised the firm's estimates to account for Tesla reporting deliveries 11.8% below BofA's initial estimate. On "a more positive note," Tesla did start its Robotaxi service in Austin, which gives the firm more confidence on the promise to deliver unsupervised FSD by the end of 2025, BofA added in a preview.

Earlier this month, Goldman Sachs also lowered the firm's price target on Neutral-rated Tesla to $285 from $315 as part of a broader research note on U.S. Autos and Industrial Tech industry. The firm raised its U.S. auto forecast to reflect more measured tariff levels than what had been initially proposed, even though it still expects auto sales in the U.S. to moderate in the second half after pre-buying ahead of tariffs and what will likely be higher pricing in the second half due to tariffs. Goldman Sachs sees U.S. auto sales at 15.75M and 15.50M units in 2025 and 2026 respectively, compared to its prior forecast of 15.40M and 15.25M.

BIG BEAUTIFUL BILL: On July 7, William Blair downgraded Tesla to Market Perform from Outperform without a price target. While the Big Beautiful Bill's removal of the $7,500 electric vehicle tax credit was expected, the elimination of the corporate average fuel economy fines "requires a reset in expectations," the firm tells investors in a research note. William Blair believes the combination of a demand headwind from the tax credit removal and Tesla's over $2B in profit from regulatory credits being at risk "may be too much for investors to bear." The firm expects the company's reduction in regulatory credit revenue to result in a "direct hit to profitability, prompting yet another across-the-board reset to Street models."

DELIVERIES: In the second quarter, Tesla said the company produced over 410,000 vehicles, delivered over 384,000 vehicles and deployed 9.6 GWh of energy storage products.

OUTLOOK: According to current consensus data from Yahoo Finance, Tesla is expected to report Q2 EPS of 40c and Q2 revenue of $22.13B.

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