Zinger Key Points Tesla is due to report financial results for the second quarter after the market close on Wednesday. Wedbush's Dan Ives reiterates an Outperform rating and price target of $500 ahead of the print. The Wedbush analyst recently called on Tesla's board to establish 25% voting control for Musk, which he believes would create a path for a potential merger between Tesla and Musk's xAI. Ives noted that investors will be listening for any updates on a potential xAI investment on Tesla’s earnings call on Wednesday. Other analysts are less optimistic heading into Wednesday’s print with Goldman Sachs cutting its target from $315 to $285 and Mizuho lowering its target from $390 to $375 earlier this month. Guggenheim also maintained a Sell rating at the beginning of the month with a price target of $175. TSLA Price Action: Tesla shares were up 1.07% at $332.01 at the time of publication on Tuesday, according to Benzinga Pro. Tesla stock is trading above its 50-day moving average of $324.98, indicating a bullish short-term trend. The stock is also trading above the 200-day moving average of $318.48, suggesting overall strength in the longer-term trend. Despite gaining nearly 40% over the past three months, Tesla shares are still down about 18% year-to-date. Tesla’s P/E ratio of 187.71 indicates a high valuation relative to earnings, reflecting strong market expectations for future growth. With a market cap of $1.06 trillion, Tesla remains a dominant player in the electric vehicle sector, though much of its valuation is centered around the company’s AI ambitions. Ives said on Tuesday that Tesla’s autonomous initiatives are worth $1 trillion alone over the next few years. Loading...