Tesla's latest earnings were a mixed bag of good and bad news, Wall Street analysts said. A slew of major banks cut price targets after the results.

Several analysts have downwardly revised their future earnings estimates since January, which has lowered the consensus numbers for 2025 and 2026 by 22% and 16%, respectively. Wall Street now expects Tesla's earnings to increase at 18% annually through 2026. That makes the current valuation of 100 times earnings look very expensive.

Tesla’s (TSLA) profit in the first quarter of 2025 plunged a stunning 71 percent, as sales dropped 9 percent from the year-ago period. Despite the sales decline — and the possibility of more to come — the electric vehicle maker’s stock actually rose after the report,