Two Blowout Quarters, Two Selloffs: What Tesla and Alphabet Reveal About our Price Target
Tesla and Alphabet both delivered blowout quarters and both got punished by the market anyway. Before you follow the crowd and sell, our price targets reveal why the selloff reaction may be telling the wrong story entirely.
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Two of the market’s most-watched companies reported blowout quarters on the same night, and both sold off anyway.
Tesla (NASDAQ:TSLA | TSLA Price Prediction) beat revenue by 7.10% yet missed EPS by 38.51%, while Alphabet (NASDAQ:GOOG) crushed EPS by 199.41%. Both stocks fell. Our 24/7 Wall St. price target says both selloffs are opportunities, but for very different reasons.
The Verdict: Two Blowouts, Two Buys
Our 24/7 Wall St. price target for Tesla is $413.49, implying 10.56% upside from $374.01. Our 24/7 Wall St. price target for Alphabet is $545.95, implying 59.68% upside from $341.91. Both earn a buy at high confidence.
| Metric | Tesla | Alphabet |
|---|---|---|
| Current Price | $374.01 | $341.91 |
| 24/7 Wall St. Price Target | $413.49 | $545.95 |
| Upside | 10.56% | 59.68% |
| Recommendation | BUY | BUY |
| Confidence | 90% | 90% |
Blowout Quarters, Cold Market Reception
Tesla posted record deliveries of 480,126 vehicles and revenue of $28.24 billion (+25.52% YoY), but operating margin collapsed to 1.4% and free cash flow flipped to negative $1.09 billion. Shares are down 5.18% on the week and 16.83% year to date.
Alphabet’s Q2 revenue of $119.80 billion (+24.23%) was overshadowed by $44.92 billion in single-quarter capex, a suspended buyback, and roughly $70 billion in combined equity and debt raised.
The stock dropped 7.64% on the week even with Cloud growth accelerating to 82%. As Sundar Pichai put it, “Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth.”
Bull and Bear Cases in Brief
Tesla bulls point to 1.48 million FSD subscriptions (+56% YoY), a seven-metro robotaxi footprint, and Optimus production lines going in at Fremont. Our bull case is $479.66. Bears note capex ballooning 141.81% against collapsing margins; the bear case is $365.83. Polymarket’s crowd is skeptical, implying a $341.37 target, well below analyst consensus of $425.22. Multiple analysts lowered their price target on the stock.
Alphabet bulls have 58 buy ratings and a consensus target of $430.07. Our bull case is $610.65, driven by Gemini’s 950 million MAUs and Cloud momentum. Raymond James analyst Josh Beck lowered the firm’s price target on Alphabet to $400 from $425 and keeps a Strong Buy rating on the shares. The bear case is $432.97, still above spot. Bears would argue negative FCF is unsustainable, though this reflects front-loaded AI infrastructure investment as the operating business remains highly profitable.
How They Stack Up Against Meta
The right cross-check for Alphabet’s capex-driven selloff is Meta Platforms (NASDAQ:META), the other hyperscaler funding an AI arms race. Alphabet trades at a trailing P/E of 26, the cheapest mega-cap in the AI cohort, while Tesla’s 344 trailing multiple is in a different universe.
Meta faces the same investor pushback on AI spending, but Alphabet layers on 32.05% operating margins and 82% Cloud growth. Against this peer set, our $545.95 target for GOOG looks reasonable, and our $413.49 target for TSLA looks appropriately cautious.
| Company | Trailing P/E | Latest Rev Growth |
|---|---|---|
| Alphabet | 26 | 24.23% |
| Tesla | 344 | 25.52% |
| Meta | Peer benchmark | Peer benchmark |
The Bottom Line: Both Selloffs Look Overdone
The 24/7 Wall St. model rates both buy, with higher conviction on Alphabet. The 24/7 Wall St. price target of $545.95 for GOOG reflects a rare combination of cheap multiples and accelerating growth.
Tesla at $413.49 is a narrower call: the thesis strengthens if robotaxi economics prove out, and remains more uncertain if operating margin stays below 5% into Q3.
| Year | TSLA Target | GOOG Target |
|---|---|---|
| 2026 | $413 | $546 |
| 2027 | $445 | $680 |
| 2028 | $475 | $820 |
| 2029 | $505 | $1,020 |
| 2030 | $538 | $1,228 |
These projections assume both companies continue executing on AI and autonomy strategies. Significant upside or downside could come from robotaxi commercialization at Tesla and Cloud share gains at Alphabet.
Contact [email protected] for any questions or corrections.
Vandita Jadeja is a financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. She has contributed to several publications, including the Joy Wallet, Benzinga, The Motley Fool and InvestorPlace.
