Zacks Investment Ideas feature highlights: Tesla and Alphabet

For Immediate ReleaseChicago, IL – April 22, 2025– Today, Zacks Investment Ideas feature Tesla TSLA and Alphabet GOOGL.Tesla Earnings Call Looms Amid Mounting Pressures: 3 Key QuestionsCan Tesla Weather the Storm?Zacks Rank #4 (Sell) stock Tesla is the leading EV-maker worldwide. However, recently, as Tesla attempts to enter new businesses and diversify from its core business, its legacy business has seen growth slow significantly amid political backlash, a slowing EV market, more competition, and an uncertain macroeconomic environment.Between the "Top Gear" Roadster review controversy, the Global Financial Crisis of 2008, and the COVID-19 pandemic, Tesla and its eccentric CEO Elon Musk have been through tough times before and made it out to the other side on top. Nevertheless, Musk and Tesla have their backs against the wall once again heading into earnings tomorrow.With Tesla shares already down about 40% year-to-date, investors will be closely watching Tuesday night's earnings call. That said, be sure to have a stomach for volatility if you want to play earnings, as the options market implies about a 9% move after the earnings are released. Below are key questions that investors will be looking to get answered Tuesday.1. Tariffs Impact: What Tesla's Doing to MitigateThough Elon Musk has become one of the most outspoken Trump supporters and a de facto member of the administration, he is one of the most negatively impacted by the administration's ever-evolving tariff policy. While Tesla manufactures many of its vehicles in the United States, it relies heavily on imports and the global supply chain for parts. In addition, raw materials like lithium and cobalt are necessary ingredients for battery production and must be sourced from countries like Canada.2. DOGE Political Fallout: When Will Musk Return to TSLA?Until recently, electric vehicles were mainly a staple for those on the left side of the political aisle. However, that narrative has been flipped on its head after President Donald Trump tapped Elon Musk to run the "Department of Government Efficiency" (DOGE). Since then, Musk has faced significant backlash from Democrats, including boycotts and vandalism.To make matters worse, most of Musk's already limited time has been spent on DOGE, not Tesla. The last time Musk took time away from Tesla was when he purchased Twitter. At that time, investors reacted negatively and sold shares. In tomorrow's earnings call it will be critical that Elon Musk gives an exact return date to Tesla. Should he not, investors are likely to react negatively.3. Will the Robotaxi Launch on Time?Elon Musk is known for his ambitious and aggressive timelines. While Musk often succeeds in the long term, he is not known for his punctuality. Currently, Tesla plans to roll out its first autonomous "Robotaxi" program in Austin, Texas, this summer. However, many investors are skeptical because Trump's tariffs impact parts needed for Musk's Cybercab.In the meantime, Alphabet's Waymo robotaxi service is off to a significant lead in the race for autonomous taxi service. Waymo already operates in four major cities and is expected to roll out five more cities in the near future. Failure of Tesla to confirm its autonomous ride-hailing service timeline will likely put more pressure on the stock.Bottom LineAs the market braces for Tesla's earnings report, the confluence of tariff pressures, political headwinds, and uncertainty surrounding the Robotaxi launch create a formidable challenge for the EV giant. While Tesla has demonstrated resilience in the face of past crises, the current multifaceted storm presents a unique test of its ability to navigate a complex and evolving landscape.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks