Tesla Faces Harsh Q2 Outlook, Analyst Calls for Aggressive Short
GLJ Research analyst Gordon Johnson is sounding the alarm on Tesla once again. In a new note to investors, Johnson urges an 'aggressive short' on the stock through the second quarter of 2025. His warning centers on what he says is a record-breaking gap between Wall Street's delivery expectations and what he believes Tesla will actually achieve.
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Johnson estimates Tesla will deliver around 342,700 vehicles in Q2, nearly 96,000 units fewer than current consensus estimates. He calls this the largest forecast discrepancy he's ever seen, suggesting the stock is set for a serious correction once expectations are revised downward.
GLJ Research maintains a Sell rating on Tesla and a strikingly bearish price target of $24.86, far below Tesla's recent share price of $242 (as of writing). Johnson argues that falling deliveries, intense global competition, and declining brand loyalty put pressure on the company. He also says the full impact of CEO Elon Musk's damaged public image won't be fully felt until this quarter.
Musk's Politics Becoming a Stock Risk
Analysts are growing concerned about Elon Musk's increasing political involvement, which some believe is becoming a business liability. In February, Stifel analyst Stephen Gengaro cut his Tesla price target from $492 to $474 and cited Musk's political activity as a key reason. Gengaro noted that Tesla's net favorability rating fell to just 3%, near an all-time low, and that purchase interest has dropped, especially in key U.S. and European markets.
Musk's strong support for former President Trump, combined with controversial public comments, has led to consumer backlash, with some former fans now calling for boycotts. While some analysts remain optimistic about Tesla's long-term tech potential, more are now watching how closely the company's brand and stock are tied to its outspoken CEO.
Is Tesla a Buy, Sell, or a Hold?
Tesla stock continues to fluctuate and is considered a Hold, based on 39 analysts' ratings. The average price target for TSLA stock is $298.38, suggesting a 23.18% upside potential.
See more TSLA analyst ratings
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Toronto Sun
9 hours ago
- Toronto Sun
Canada-Europe security and defence pact to be signed Monday in Brussels
Published Jun 20, 2025 • 3 minute read Canadian Prime Minister Mark Carney speaks as he attends a tour of the Fort York Armoury in Toronto on June 9, 2025 in Toronto, Canada. Prime Minister Carney has pledged to meet NATO's 2% spending pledge this — A security and defence partnership pact Prime Minister Mark Carney will sign with European leaders in Brussels on Monday will be among the most wide-ranging agreements with a third country Europe has ever reached, a senior EU official said on Friday. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Carney is flying to Europe Sunday for a Canada — EU Summit, planned for Monday evening with European Council President Antonio Costa and European Commission President Ursula von der Leyen. At the G7 summit in Alberta on Monday von der Leyen confirmed that the agreement will be signed on Monday in Brussels, calling Canada a 'key partner.' 'This is also a moment where we can strengthen Canada's role in Europe's rapidly evolving defence architecture,' said Von der Leyen on June 16. In a briefing to Canadian and European reporters on Friday, a senior European official said there will be two main outcomes from the summit — a joint statement that expresses views on global issues, such as conflicts in Ukraine and the Middle East, as well as the signing of the 'EU Canada Security and Defence Partnership Agreement.' Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'This is an ambitious one,' the official said. 'And actually we've had this with a number of global partners, but the one with Canada would be one of the most far reaching of its kind that the EU has ever signed with a third country. It will open up new avenues for joint work on crisis management, military mobility, maritime security, cyber and cyber threats, and defence industrial co-operation.' Carney has been clear that he intends to expand Canada's ties with Europe as its relationship with the United States strains under the weight of tariffs and threats of annexation. Within two days of being sworn in as prime minister in March Carney flew to Europe, meeting with French President Emmanuel Macron in Paris and British Prime Minister Keir Starmer in London. This advertisement has not loaded yet, but your article continues below. It was during those meetings that he seriously began talking about signing on to Europe's new defence procurement plan known as ReArm Europe. In the throne speech on May 27, Carney's government pledged to join that program, and he told the CBC in an interview that same day he expected Canada to do that by July 1. On June 9, Carney announced a massive investment in Canada's defence budget to push Canada above the two per cent of GDP NATO target this country has promised — and failed — to meet for more than a decade. Joining ReArm Europe is part of that plan, with Carney repeatedly saying Canada can no longer put all its defence spending into the U.S. 'We are in close discussions with our European partners to join ReArm Europe,' he said on June 9. 'That will be an element of diversification. That's just smart. It's better to be diversified. It's better to have options. It's better to have different supply chains and broader partners.' This advertisement has not loaded yet, but your article continues below. The agenda for the summit posted by the European Council says the security and defence procurement agreement will allow Canada to join a European loan program for joint defence projects. That 150-billion euro program — called Security Action for Europe, or SAFE — is part of the ReArm Europe initiative. The EU official said on Friday that once the procurement agreement is in place, Canada will have to negotiate a bilateral agreement with the European Commission to begin discussions with member states about procurement opportunities. Leaders at the EU-Canada summit are also expected to discuss global trade and the wars raging in Ukraine and the Middle East. They will also commit to fully ratifying the Comprehensive Economic and Trade Agreement, the Canada-Europe free trade agreement known as CETA. This advertisement has not loaded yet, but your article continues below. Fen Hampson, a professor of international affairs at Carleton University, said Carney also should put the 'pedal to the metal' on ratifying CETA. The deal entered into force provisionally in 2017, but several EU member states still need to ratify CETA at the national level. 'The real challenge there is to get Canadian businesses and also European businesses to take it up … and to start doing more business across the Atlantic, but that also requires political leadership,' Hampson said. 'It hasn't been fully ratified but that's something (Carney) can perhaps impress upon the Europeans.' After Brussels, Carney will travel to The Hague for the NATO leaders' summit, where discussions are expected to push forward on increasing the NATO members' defence spending target as high as five per cent of GDP, from the current two per cent. RECOMMENDED VIDEO World Columnists MMA World Toronto & GTA
Winnipeg Free Press
9 hours ago
- Winnipeg Free Press
Canada-Europe security and defence pact to be signed Monday in Brussels
OTTAWA – A security and defence partnership pact Prime Minister Mark Carney will sign with European leaders in Brussels on Monday will be among the most wide-ranging agreements with a third country Europe has ever reached, a senior EU official said on Friday. Carney is flying to Europe Sunday for a Canada — EU Summit, planned for Monday evening with European Council President António Costa and European Commission President Ursula von der Leyen. At the G7 summit in Alberta on Monday von der Leyen confirmed that the agreement will be signed on Monday in Brussels, calling Canada a 'key partner.' 'This is also a moment where we can strengthen Canada's role in Europe's rapidly evolving defence architecture,' said Von der Leyen on June 16. In a briefing to Canadian and European reporters on Friday, a senior European official said there will be two main outcomes from the summit — a joint statement that expresses views on global issues, such as conflicts in Ukraine and the Middle East, as well as the signing of the 'EU Canada Security and Defence Partnership Agreement.' 'This is an ambitious one,' the official said. 'And actually we've had this with a number of global partners, but the one with Canada would be one of the most far reaching of its kind that the EU has ever signed with a third country. It will open up new avenues for joint work on crisis management, military mobility, maritime security, cyber and cyber threats, and defence industrial co-operation.' Carney has been clear that he intends to expand Canada's ties with Europe as its relationship with the United States strains under the weight of tariffs and threats of annexation. Within two days of being sworn in as prime minister in March Carney flew to Europe, meeting with French President Emmanuel Macron in Paris and British Prime Minister Keir Starmer in London. It was during those meetings that he seriously began talking about signing on to Europe's new defence procurement plan known as ReArm Europe. In the throne speech on May 27, Carney's government pledged to join that program, and he told the CBC in an interview that same day he expected Canada to do that by July 1. On June 9, Carney announced a massive investment in Canada's defence budget to push Canada above the two per cent of GDP NATO target this country has promised — and failed — to meet for more than a decade. Joining ReArm Europe is part of that plan, with Carney repeatedly saying Canada can no longer put all its defence spending into the U.S. 'We are in close discussions with our European partners to join ReArm Europe,' he said on June 9. 'That will be an element of diversification. That's just smart. It's better to be diversified. It's better to have options. It's better to have different supply chains and broader partners.' The agenda for the summit posted by the European Council says the security and defence procurement agreement will allow Canada to join a European loan program for joint defence projects. That 150-billion euro program — called Security Action for Europe, or SAFE — is part of the ReArm Europe initiative. The EU official said on Friday that once the procurement agreement is in place, Canada will have to negotiate a bilateral agreement with the European Commission to begin discussions with member states about procurement opportunities. Leaders at the EU-Canada summit are also expected to discuss global trade and the wars raging in Ukraine and the Middle East. They will also commit to fully ratifying the Comprehensive Economic and Trade Agreement, the Canada-Europe free trade agreement known as CETA. Fen Hampson, a professor of international affairs at Carleton University, said Carney also should put the 'pedal to the metal' on ratifying CETA. The deal entered into force provisionally in 2017, but several EU member states still need to ratify CETA at the national level. 'The real challenge there is to get Canadian businesses and also European businesses to take it up … and to start doing more business across the Atlantic, but that also requires political leadership,' Hampson said. 'It hasn't been fully ratified but that's something (Carney) can perhaps impress upon the Europeans.' After Brussels, Carney will travel to The Hague for the NATO leaders' summit, where discussions are expected to push forward on increasing the NATO members' defence spending target as high as five per cent of GDP, from the current two per cent. — With files from Kyle Duggan, Dylan Robertson and The Associated Press This report by The Canadian Press was first published June 20, 2025.
Globe and Mail
9 hours ago
- Globe and Mail
As Musk's 'robotaxi' rollout approaches, Democratic lawmakers in Texas try to throw up a roadblock
NEW YORK (AP) — A group of Democratic lawmakers in Texas is asking Elon Musk to delay the planned rollout of driverless 'robotaxis' in the state this weekend to assure that the vehicles are safe. In a letter, seven state legislators asked Tesla to wait until September when a new law takes effect that will require several checks before autonomous vehicles can be deployed without a human in the driver's seat. Tesla is slated to begin testing a dozen of what it calls robotaxis for paying customers on Sunday in a limited area of Austin, Texas. 'We are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September 1, 2025,' the letter from Wednesday, June 18, reads. 'We believe this is in the best interest of both public safety and building public trust in Tesla's operations.' It's not clear if the letter will have much impact. Republicans have been a dominant majority in the Texas Legislature for more than 20 years. State lawmakers and Republican Gov. Greg Abbott have generally embraced Musk and the jobs and investment he has brought to Texas, from his SpaceX rocket program on the coast, to his Tesla factory in Austin. The company, which is headquartered in Austin, did not responded immediately to a request for comment from The Associated Press. The law will require companies to secure approval from the state motor vehicles department to operate autonomous cars with passengers. That approval, in turn, would depend on sufficient proof that the cars won't pose a high risk to others if the self-driving system breaks down, among other reassurances. Companies would also have to file detailed plans for how first responders should handle the cars if there is a problem, such as an accident. The letter asked Tesla to assure the legislators it has met all the requirements of the law even if it decides to go ahead with the test run this weekend. The letter was earlier reported by Reuters. Musk has made the robotaxi program a priority at Tesla and a failure would likely be highly damaging to the company's stock, which has already tumbled 20% this year. Musk's political views and his affiliation with the Trump administration have drastically reduced sales of Tesla, particularly in Europe, where Musk's endorsement of Germany's far-right Alternative for Germany party in February's election drew broad condemnation. Tesla shares bottomed out in March and have rebounded somewhat in recent months. Much of the rise reflects optimism that robotaxis will not only be deployed without a hitch, but that the service will quickly expand to other cities and eventually dominate the self-driving cab business. Rival Waymo is already picking up passengers in Austin and several other cities, and recently boasted of surpassing 10 million paid rides. In afternoon trading Friday, Tesla shares were largely unchanged at $320.
