Tesla Stock: Earnings Fall 43% In ‘Difficult Operating Environment’; Elon Musk Due (Live Coverage) – Finapress

Tesla (TSLA) announced mixed second-quarter earnings and revenue late Tuesday, with earnings sinking greater than 40% while sales came in above expectations. Tesla stock dropped after the market closed.

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Tesla’s Robotaxi Is Delayed. Will It Make A Difference For Tesla Stock?

5:33 p.m. ET

Conference Call Starts: What To Look For

The conference call is getting began. Key questions attempting to be answered, include timing across the $25,000 vehicle product and when a robotaxi could hit the roads.

Investors must also seek for information on vehicle pricing, the 2024 election and auto gross margins.

As an aside, Tesla also reported Cybertruck production is on course to understand profitability by end of yr.

5:28 p.m. ET

Waiting On The Tesla Earnings Call

CEO Elon Musk will take center stage on the Tesla earnings conference call set to begin out at 5:30 p.m. ET, though Tesla events sometimes get off to a late start.

Tesla stock is down 4% following the earnings miss, but Musk’s comments could easily swing shares.

Tesla Earnings Tumble

The electrical-vehicle giant reported Tuesday that earnings fell 43% to 52 cents per share. Meanwhile, quarterly revenue totaled $25.5 billion, up 2% vs. the year-earlier quarter. Analysts had predicted Tesla would report earnings of 61 cents a share with sales sliding to $24.54 billion, in accordance with FactSet. Nevertheless, Wall Street saw revenue increasing barely to $25.05 billion.

Tesla reported Tuesday it “achieved record quarterly revenues despite a difficult operating environment.” Meanwhile, Tesla’s gross margins fell 23 basis points to 18%. Auto gross margins, excluding regulatory credits and leases, came in at 14.6%. Analysts had expected auto gross margins of 15.1%, in accordance with FactSet.

Looking ahead, Tesla said throughout the earnings report that its vehicle volume growth rate in 2024 “may be notably lower than the expansion rate” last yr. The EV giant added that growth in its energy storage business should outpace its automotive segment.

Nevertheless, Tesla added its plans for brand spanking recent vehicles, including within your means models, remain on course to begin out production in the first half of 2025. That signifies that mass production won’t start until late 2025 on the earliest.

Tesla Stock

Tesla stock dropped greater than 3% after the close but before the conference call. That followed a 2% drop to 246.38 during the regular market session on Tuesday, whilst vehicle registration data out of China showed a solid begin to the third quarter.

Tesla stock has a 271 handle buy point on a consolidation going back several months to a yr, in accordance with MarketSurge chart evaluation. After earnings, investors could use a break of the handle’s downtrend as an aggressive entry.

Investor sentiment has been upbeat, with Tesla stock surging greater than 25% in July after the EV maker announced a surprise second-quarter beat in vehicle deliveries earlier this month.

CEO Elon Musk In Focus

Throughout the conference call, the fundamental focus, as usual, will likely be on Chief Executive Elon Musk. Investors will seek insight on robotaxis, future cheaper models and the Optimus humanoid robot. Also expected is word on artificial intelligence and autonomous driving.

Analysts and investors alike are hungry for information on Tesla’s robotaxi reveal, which had been slated for Aug. 8 but has been reportedly pushed to October. Musk confirmed the event postponement with a July 15 post on X. He wrote there’s an “vital design change to the front and additional time allows us to point off a few other things.”

Tesla reported in its earnings release the timing of robotaxi deployment relies on “technological advancement and regulatory approval.” The EV giant added it’s “working vigorously on this likelihood given the outsized potential value.”

The company added that the Optimus robot is performing its “first task handling batteries” at one amongst its facilities.

Tesla Stock Performance

Tesla shareholders recently voted in favor of giving Musk his 2018 $56 billion pay package and reincorporating the company in Texas, moving it from Delaware.

Tesla stock ranks third throughout the 35-member IBD Auto Manufacturers industry group. The stock has an 87 Composite Rating out of a best-possible 99. Shares have a 91 Relative Strength Rating and a 62 EPS Rating.

Please follow Kit Norton on X @KitNorton for more coverage.