2025 has been a tough year for Tesla, with a notable downturn in car sales and a decline in public support. However, an analyst who specializes in transportation technology believes that the company's earnings outlook is "not as bad as you think."
As reported by Teslarati, Piper Sandler senior research analyst Alexander Potter released a research note that addressed the potential of Tesla's stock performance. According to Potter, many of the concerns regarding the electric vehicle manufacturer's financial future are "overblown."
Currently, the federal government offers car buyers a $7,500 tax credit for purchasing a brand-new EV and a $4,000 tax credit for a used EV purchase. However, these credits are now slated to expire Sept. 30.
The removal of the EV tax credits can be seen as a big blow to many EV manufacturers, especially Tesla, which has previously reported decreased car sales in many key markets around the globe throughout the first half of 2025. While this may potentially scare off some investors, Sandler doesn't seem too bothered by Tesla's earnings outlook.
"So it's fair to ask: Will recent regulatory changes threaten Tesla's earnings outlook? In short, we think the answer is no, at least not in 2025," Sandler wrote in the research note. "We think that while it's true that the U.S. government is committed to rescinding financial support for the EV and battery industries, Tesla will still book around $3 billion in credits this year, followed by $2.3 billion in 2026."
As with any financial investment, Sandler does warn that it can be difficult to forecast the "financial impact of regulatory credits."
If you're considering making an EV your next car, the potential loss of hefty tax credits could be a deal breaker for you. However, EVs have continued to prove to be an excellent investment for owners. With lower maintenance requirements than gas-powered cars and increased battery life, switching to an EV can not only help the environment but your wallet as well.
To save even more money with your EV, installing solar panels can dramatically increase your cost savings. Charging your EV with solar energy can be much cheaper than using public charging stations or relying on the grid. EnergySage can make it easy to compare quotes from vetted local installers and help you save up to $10,000 on solar installations.
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