Next week on the stock market

Coca-Cola’s recent performance has been impressive, with the group managing to beat profit expectations back in the first quarter. Growth of late has been mainly fuelled by higher prices, and we’re keen to see if that’s still the case when it reports second-quarter numbers next week. Markets are forecasting underlying operating growth of around 3% to $4.2bn, as the group rolls into some tough comparable periods.

There’s also an ongoing tax dispute with US tax authorities, with a potential multi-billion-dollar payment on the line. Last we heard, Coca-Cola seemed confident of winning the legal battle, but we’ll be keeping an eye out for any updates. Despite some unfavourable one-off payments, cash flows remain very healthy, providing scope for increased share buybacks and new acquisitions in the near to medium term. But remember, these are never guaranteed.

It’s an important month for Lloyds, not just because of next week's half-year results, but also because the Supreme Court is expected to make a judgment on the motor finance case. Lloyds has already taken £1.15bn in provisions and analysts expect another c.£800mn over 2025, with some pencilling in another tranche next week. Lloyds has around a 14% share of the motor finance market, making it more exposed than most of its peers, so investors will be keeping a close eye on how this develops.

In terms of financials, Lloyd’s giant retail banking exposure already gives it a cost advantage over peers, and we’re expecting to see more actions taken to drive cost efficiencies. Structural hedge repricing should continue to be a tailwind, too, even if rates continue to come down over the rest of the year. We’re expecting strong underlying performance, and if coupled with a favourable outcome from the motor finance investigation, the valuation looks relatively attractive. Though there are no guarantees.

It’s hard to remember when a set of financials mattered less for Tesla than next week’s second-quarter results. The investment case has moved on from the core auto business to an AI-driven future, and there’ll be more riding on Elon Musk’s commentary about the Robotaxi rollout than anything else.

The core auto business is in a challenging spot; Chinese competitors, often backed by government cash, are causing a tough market to be even tougher. In the US, there’ll likely be a pull forward in demand as buyers look to get in ahead of EV incentive cuts. But the reality is, Tesla’s nearly $1 trillion market cap cannot be justified by simply selling a few more cars.

The next chapter is firmly about automation. The Robotaxi rollout is stage one, but the real goldmine will come if Tesla can ramp up production of its Cybercab next year. In the near term, any positive commentary on Robotaxi safety metrics or increasing fleet size will likely be good enough to offset any weakness in the core business.

The author holds shares in Tesla.