This Is the Mag 7’s Worst Performer Right Now. Can Q2 Change the Story?

2 months ago 31

Vandita Jadeja

Tue, July 21, 2026 astatine 9:30 AM CDT 5 min read

Quick Read

Tesla (TSLA) earns a BUY standing and $428 terms target, offering 16% upside connected rebounding automotive margins and a Q1 EPS bushed of 18%.
GM trades adjacent 25x net connected existent currency portion Rivian posts antagonistic EBITDA, making Tesla's 167x guardant P/E a axenic stake connected auto-plus-AI.
Prediction markets terms a 78% accidental Tesla beats Q2 EPS, with the bull lawsuit targeting $487 if Cybercab launches and FSD subscriptions clasp supra 40% growth.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Tesla didn't marque the cut. Grab the names FREE today.

Tesla (NASDAQ:TSLA) heads into its Q2 2026 net study time arsenic the undisputed laggard of the Magnificent 7. Shares are down 17.82% twelvemonth to date, severely trailing each different sanction successful the cohort. Our proprietary exemplary says the setup is much constructive than the portion suggests.

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Our 24/7 Wall St. Price Target for Tesla

The 24/7 Wall St. terms people for Tesla is $428.08, implying 15.83% upside from the existent $369.57 quote. Our proposal is buy.

The standing reflects a re-rating pathway from expanding automotive margins, an accelerating Services and Other line, and imminent merchandise catalysts successful Cybercab, Semi, and Optimus. Q2 is the near-term trigger; the multi-year AI thesis is the structural driver.

Why Tesla Has Been the Mag 7 Anchor successful 2026

Tesla has slid 6.38% successful the past week and 7.72% successful the past month, sitting good beneath the 52-week precocious of $498.83 deed precocious past year.

In Q1 2026, Tesla reported gross of $22.387 billion, up 15.78% YoY, and non-GAAP EPS of $0.41 versus a $0.3481 estimate, a 17.78% beat. Automotive gross borderline snapped backmost to 21.1% from 16.2% from a twelvemonth earlier, and Services and Other gross jumped 42% to $3.745 cardinal connected 1.28 cardinal FSD subscriptions. Q2 reports July 22 aft the close.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Tesla didn't marque the cut. Grab the names FREE today.

The Case for the Bull Scenario

Our bull script gets Tesla to $487.11 wrong 12 months, a 31.81% full return. Cybercab measurement accumulation astatine Giga Texas, Tesla Semi measurement production, Megapack 3, and the Optimus Fremont enactment each deed successful 2026. FSD subscriptions roseate 51% YoY, and Netherlands support opens the EU.

Prediction markets connected Polymarket terms a 77.5% probability of a Q2 EPS beat. On 7investing's AI Investor Podcast, Simon Erickson framed a robotaxi-success DCF astatine $700 per share, arguing Tesla "can astir apt treble again" if regulators cooperate.

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