Wall Street Shifts Focus to Tesla's Physical AI Strategy Ahead of Q2 Earnings on July 22

TSLA2.51%
According to Business Insider on July 21, Wall Street investment banks are pivoting focus from Tesla's electric vehicle sales to its Physical AI strategy—including robotaxis and Optimus humanoid robots—as the company prepares to release second-quarter earnings on July 22. BofA maintained a "Buy" rating with a $391 target price, highlighting Tesla's expansion of robotaxi services and Optimus production plans. Morgan Stanley slightly lowered its target to $415 from $417 while keeping an "Overweight" stance, noting that robotaxis and Optimus remain key drivers of stock valuation. Oppenheimer raised Tesla's 2026 capital expenditure forecast to $20 billion from $18 billion to support aggressive expansion of production capabilities for Physical AI products.
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