Summary
- Tesla is set to report earnings for the second quarter with Elon Musk expected to field questions from analysts
- The company’s Robotaxi event has been pushed back to October from August
- Analysts are concerned about margins dipping due to financing discounts offered by Tesla
- The delay in the Robotaxi event is seen as a positive by some analysts and could enhance the unveiling
- Tesla reported strong delivery figures for the quarter and a significant increase in stock price
Article
Tesla is preparing to report its earnings for the second quarter, with analysts expecting a different feel to the call compared to previous ones. CEO Elon Musk will be on the call, addressing questions regarding the company’s strong second quarter and recent developments. The delay of Tesla’s Robotaxi event to October will likely be a focal point, along with headlines such as workforce reductions and a focus on artificial intelligence.
One significant topic of discussion for analysts will be Tesla’s margins, with Wall Street predicting a slip in automotive gross margin to 16.27 percent, the lowest since Q1 2019. This decrease is attributed to attractive financing discounts offered by Tesla during the quarter. Analysts believe margins will increase back to normal levels in 2025 as Cybertruck production ramps up. Paul Marino of GraniteShares highlighted the potential of AI and robotaxi technologies as long-term opportunities for the company.
The rollout of Robotaxi and an update on Full Self-Driving (FSD) will be key areas of focus during the earnings call. Despite the delay of the Robotaxi unveiling event, analysts believe this will not have a significant impact on Tesla’s long-term prospects. Dan Ives suggested that the delay could result in a more impressive event and prototypes. Tesla’s delivery beat in the second quarter and strong performance in Tesla Energy deployments could also drive positive results in the earnings report.
Tesla’s strong delivery figures and energy segment performance have led to a surge in its stock price, with the company surpassing Wall Street estimates by delivering 6,000 more vehicles than expected. Tesla Energy’s performance is expected to play a significant role in future earnings reports, with analysts anticipating a solid quarter due to stable pricing, higher revenue from full self-driving, and strong energy segment results. The earnings report is scheduled to be released after the market closes, followed by an earnings call with Musk and other executives.
Overall, analysts are anticipating a range of topics to be addressed during Tesla’s second quarter earnings call. From margins and the delay of the Robotaxi event to delivery figures and Tesla Energy performance, there are several factors that could impact the company’s financial results. Despite the delay of the Robotaxi event, analysts remain optimistic about Tesla’s long-term prospects and the potential for future growth in areas such as AI and autonomous driving technology. The earnings report and subsequent call with Musk will provide further insights into the financial performance and future outlook of the company.
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