Tesla's Q2 Margins Expected to Dip as Focus Shifts to Robotaxi and AI Ventures

Tesla margins likely dipped in Q2; robotaxi, AI ventures in focus

July 22 (Reuters) - Tesla's (TSLA.O), opens new tab second-quarter margin hit a more than five-year low, the electric vehicle maker is likely to report on Tuesday, and its CEO Elon Musk is expected to double down on the company's robotaxi plans and AI products. Discounts to clear inventory, price cuts and incentives such as cheaper financing options offered to boost EV sales have squeezed Tesla's margin over the past two years, while sales dropped as customers grew tired of its old model lineup. The company is laying off 10% of its global workforce, a memo revealed in April. Now, investors will want to hear more on Tesla's pivot to self-driving technology and how that could once again set the company apart from other automakers and fuel the sort of rally in its stock that propelled it to a record high in 2021. Musk had announced earlier this year that Tesla would unveil its robotaxi on Aug. 8, but signaled last week the automaker would take more time to incorporate a design change following a media report that the launch was delayed to October. Wall Street expects Tesla's automotive gross margin, excluding regulatory credits, to have slipped to 16.27% in the April-June period, its lowest since the first quarter of 2019, according to 20 analysts polled by Visible Alpha. Profit margin for vehicle sales, excluding the sales of regulatory credits, was 16.36% in the January-March period and 18.14% in the second quarter of 2023. Tesla's discounted financing at a time when interest rates are high "represents an even less visible price cut", Bernstein analyst Toni Sacconaghi said in a note earlier this month. This cost will be "realized gradually over the life of the loan, effectively pushing out margin pressure into future periods," he said. Margins are likely to bottom by the end of this year and start to increase next year, analysts said, as costs associated with a production ramp-up of the Cybertruck eases. "AI and robotaxi is such a huge opportunity over the next two, three, five years. So if you're a long-term believer, you're going to take the margins like your medicine," said Paul Marino, Chief Revenue Officer of GraniteShares, which offers funds related to Tesla's stock. ROBOTAXIS Some investors believe Tesla has little competition in the US robotaxi industry and its fleet of millions of cars on the roads that can be converted to robotaxis with a software upgrade, giving it an advantage over other automakers and ride-sharing platforms. But as it did with EVs, Tesla could face competition in China from BYD (002594.SZ), opens new tab, the country's largest EV maker, and a dozen other companies that have rolled out driver-assistance systems designed to navigate its densely packed urban areas. Tesla has divulged few details about its self-drive strategy. "They might continue being a little bit quiet about it they are in the negotiations with OEMs for licensing but I think eventually FSD adoption rates and other numbers will be broken out," said Jamie Meyers, senior analyst at Tesla shareholder Laffer Tengler Investments. The company could be years away from releasing a fully autonomous vehicle with regulatory approval, experts in self-driving cars and regulation have said. Self-driving companies, including General Motor's (GM.N), opens new tab Cruise, have faced technical and regulatory hurdles, and robotaxis could bring fresh challenges for Musk, who recently endorsed Donald Trump for US President. "Biggest hurdle for FSD and robotaxis will be getting regulatory approvals. Trump administration could help to move that along quickly," said Dennis Dick, equity trader at Triple D Trading said, who has a long position in Tesla. AFFORDABLE CARS, DELIVERIES GROWTH Tesla announced in April a strategic shift in its vehicle development, opting to introduce "new models" by early 2025 utilizing existing car platforms and production lines, diverging from previous plans for an entirely new model. "Investors are looking for a really positive outlook into the future, with some near-term surprises that can be implemented quickly and I think with the new lower cost model, they're going to want to see progress on that," GraniteShares' Marino said. Tesla handed over more cars to customers than analysts expected in the three months to June, but deliveries were about 5% lower than a year earlier. Analysts largely expect the company to a small increase in deliveries this year from 2023. To match its 2023 delivery record of 1.81 million vehicles, Tesla needs to deliver at least 977,815 vehicles in the second half of this year. "I think deliveries will grow fractionally for full year 2024 and grow around 15% in calendar 2025. The most important part is that they talk about September deliveries returning to growth," Gene Munster, managing partner at Deepwater Asset Management, said. Reporting by Akash Sriram in Bengaluru; Editing by Sayantani Ghosh and Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab Akash Sriram Thomson Reuters Akash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash's interests include music, football (soccer), and Formula 1.

Tesla margins likely dipped in Q2; robotaxi, AI ventures in focus

July 22 (Reuters) - Tesla's second-quarter margin hit a more than five-year low, the electric vehicle maker is likely to report on Tuesday, and its CEO Elon Musk is expected to double down on the company's robotaxi plans and AI products. Discounts to clear inventory, price cuts and incentives such as cheaper financing options offered to boost EV sales have squeezed Tesla's margin over the past two years, while sales dropped as customers grew tired of its old model lineup. The company is laying off 10% of its global workforce, a memo revealed in April. Now, investors will want to hear more on Tesla's pivot to self-driving technology and how that could once again set the company apart from other automakers and fuel the sort of rally in its stock that propelled it to a record high in 2021. Musk had announced earlier this year that Tesla would unveil its robotaxi on Aug. 8, but signaled last week the automaker would take more time to incorporate a design change following a media report that the launch was delayed to October. Wall Street expects Tesla's automotive gross margin, excluding regulatory credits, to have slipped to 16.27% in the April-June period, its lowest since the first quarter of 2019, according to 20 analysts polled by Visible Alpha. Profit margin for vehicle sales, excluding the sales of regulatory credits, was 16.36% in the January-March period and 18.14% in the second quarter of 2023. Tesla's discounted financing at a time when interest rates are high "represents an even less visible price cut", Bernstein analyst Toni Sacconaghi said in a note earlier this month. This cost will be "realized gradually over the life of the loan, effectively pushing out margin pressure into future periods," he said. Margins are likely to bottom by the end of this year and start to increase next year, analysts said, as costs associated with a production ramp-up of the Cybertruck eases. "AI and robotaxi is such a huge opportunity over the next two, three, five years. So if you're a long-term believer, you're going to take the margins like your medicine," said Paul Marino, Chief Revenue Officer of GraniteShares, which offers funds related to Tesla's stock. Some investors believe Tesla has little competition in the US robotaxi industry and its fleet of millions of cars on the roads that can be converted to robotaxis with a software upgrade, giving it an advantage over other automakers and ride-sharing platforms. But as it did with EVs, Tesla could face competition in China from BYD, the country's largest EV maker, and a dozen other companies that have rolled out driver-assistance systems designed to navigate its densely packed urban areas. Tesla has divulged few details about its self-drive strategy. "They might continue being a little bit quiet about it they are in the negotiations with OEMs for licensing but I think eventually FSD adoption rates and other numbers will be broken out," said Jamie Meyers, senior analyst at Tesla shareholder Laffer Tengler Investments. The company could be years away from releasing a fully autonomous vehicle with regulatory approval, experts in self-driving cars and regulation have said. Self-driving companies, including General Motor's Cruise, have faced technical and regulatory hurdles, and robotaxis could bring fresh challenges for Musk, who recently endorsed Donald Trump for US President. "Biggest hurdle for FSD and robotaxis will be getting regulatory approvals. Trump administration could help to move that along quickly," said Dennis Dick, equity trader at Triple D Trading said, who has a long position in Tesla. Tesla announced in April a strategic shift in its vehicle development, opting to introduce "new models" by early 2025 utilizing existing car platforms and production lines, diverging from previous plans for an entirely new model. "Investors are looking for a really positive outlook into the future, with some near-term surprises that can be implemented quickly and I think with the new lower cost model, they're going to want to see progress on that," GraniteShares' Marino said. Tesla handed over more cars to customers than analysts expected in the three months to June, but deliveries were about 5% lower than a year earlier. Analysts largely expect the company to a small increase in deliveries this year from 2023. To match its 2023 delivery record of 1.81 million vehicles, Tesla needs to deliver at least 977,815 vehicles in the second half of this year. "I think deliveries will grow fractionally for full year 2024 and grow around 15% in calendar 2025. The most important part is that they talk about September deliveries returning to growth," Gene Munster, managing partner at Deepwater Asset Management, said. (Reporting by Akash Sriram in Bengaluru; Editing by Sayantani Ghosh and Arun Koyyur)

Tesla margins likely dipped in Q2; robotaxi, AI ventures in focus

Tesla's second-quarter margin hit a more than five-year low, the electric vehicle maker is likely to report on Tuesday, and its CEO Elon Musk is expected to double down on the company's robotaxi plans and AI products. Discounts to clear inventory, price cuts and incentives such as cheaper financing options offered to boost EV sales have squeezed Tesla's margin over the past two years, while sales dropped as customers grew tired of its old model lineup. The company is laying off 10% of its global workforce, a memo revealed in April. Now, investors will want to hear more on Tesla's pivot to self-driving technology and how that could once again set the company apart from other automakers and fuel the sort of rally in its stock that propelled it to a record high in 2021. Musk had announced earlier this year that Tesla would unveil its robotaxi on Aug. 8, but signaled last week the automaker would take more time to incorporate a design change following a media report that the launch was delayed to October. Wall Street expects Tesla's automotive gross margin, excluding regulatory credits, to have slipped to 16.27% in the April-June period, its lowest since the first quarter of 2019, according to 20 analysts polled by Visible Alpha. Profit margin for vehicle sales, excluding the sales of regulatory credits, was 16.36% in the January-March period and 18.14% in the second quarter of 2023. Tesla's discounted financing at a time when interest rates are high "represents an even less visible price cut", Bernstein analyst Toni Sacconaghi said in a note earlier this month. This cost will be "realized gradually over the life of the loan, effectively pushing out margin pressure into future periods," he said. Margins are likely to bottom by the end of this year and start to increase next year, analysts said, as costs associated with a production ramp-up of the Cybertruck eases. "AI and robotaxi is such a huge opportunity over the next two, three, five years. So if you're a long-term believer, you're going to take the margins like your medicine," said Paul Marino, Chief Revenue Officer of GraniteShares, which offers funds related to Tesla's stock. ROBOTAXIS Some investors believe Tesla has little competition in the US robotaxi industry and its fleet of millions of cars on the roads that can be converted to robotaxis with a software upgrade, giving it an advantage over other automakers and ride-sharing platforms. But as it did with EVs, Tesla could face competition in China from BYD, the country's largest EV maker, and a dozen other companies that have rolled out driver-assistance systems designed to navigate its densely packed urban areas. Tesla has divulged few details about its self-drive strategy. "They might continue being a little bit quiet about it they are in the negotiations with OEMs for licensing but I think eventually FSD adoption rates and other numbers will be broken out," said Jamie Meyers, senior analyst at Tesla shareholder Laffer Tengler Investments. The company could be years away from releasing a fully autonomous vehicle with regulatory approval, experts in self-driving cars and regulation have said. Self-driving companies, including General Motor's Cruise, have faced technical and regulatory hurdles, and robotaxis could bring fresh challenges for Musk, who recently endorsed Donald Trump for US President. "Biggest hurdle for FSD and robotaxis will be getting regulatory approvals. Trump administration could help to move that along quickly," said Dennis Dick, equity trader at Triple D Trading said, who has a long position in Tesla. AFFORDABLE CARS, DELIVERIES GROWTH Tesla announced in April a strategic shift in its vehicle development, opting to introduce "new models" by early 2025 utilizing existing car platforms and production lines, diverging from previous plans for an entirely new model. "Investors are looking for a really positive outlook into the future, with some near-term surprises that can be implemented quickly and I think with the new lower cost model, they're going to want to see progress on that," GraniteShares' Marino said. Tesla handed over more cars to customers than analysts expected in the three months to June, but deliveries were about 5% lower than a year earlier. Analysts largely expect the company to a small increase in deliveries this year from 2023. To match its 2023 delivery record of 1.81 million vehicles, Tesla needs to deliver at least 977,815 vehicles in the second half of this year. "I think deliveries will grow fractionally for full year 2024 and grow around 15% in calendar 2025. The most important part is that they talk about September deliveries returning to growth," Gene Munster, managing partner at Deepwater Asset Management, said. (Reporting by Akash Sriram in Bengaluru; Editing by Sayantani Ghosh and Arun Koyyur)

Tesla margins likely dipped in Q2; robotaxi, AI ventures in focus

Telsa CEO Elon Musk said the company would unveil its robotaxi on August 8 but signaled last week the automaker would take more time to incorporate a design change following a media report that the launch was delayed to October. The company could be years away from releasing a fully autonomous vehicle with regulatory approval, experts in self-driving cars and regulation have said.Tesla's second-quarter margin hit a more than five-year low, the electric vehicle maker is likely to report on Tuesday, and its CEO Elon Musk is expected to double down on the company's robotaxi plans and AI products. Discounts to clear inventory, price cuts and incentives such as cheaper financing options offered to boost EV sales have squeezed Tesla's margin over the past two years, while sales dropped as customers grew tired of its old model lineup. The company is laying off 10% of its global workforce, a memo revealed in April. Now, investors will want to hear more on Tesla's pivot to self-driving technology and how that could once again set the company apart from other automakers and fuel the sort of rally in its stock that propelled it to a record high in 2021. Musk had announced earlier this year that Tesla would unveil its robotaxi on Aug. 8, but signaled last week the automaker would take more time to incorporate a design change following a media report that the launch was delayed to October. Wall Street expects Tesla's automotive gross margin, excluding regulatory credits, to have slipped to 16.27% in the April-June period, its lowest since the first quarter of 2019, according to 20 analysts polled by Visible Alpha. Profit margin for vehicle sales, excluding the sales of regulatory credits, was 16.36% in the January-March period and 18.14% in the second quarter of 2023. Tesla's discounted financing at a time when interest rates are high "represents an even less visible price cut", Bernstein analyst Toni Sacconaghi said in a note earlier this month. This cost will be "realized gradually over the life of the loan, effectively pushing out margin pressure into future periods," he said. Margins are likely to bottom by the end of this year and start to increase next year, analysts said, as costs associated with a production ramp-up of the Cybertruck eases. "AI and robotaxi is such a huge opportunity over the next two, three, five years. So if you're a long-term believer, you're going to take the margins like your medicine," said Paul Marino, Chief Revenue Officer of GraniteShares, which offers funds related to Tesla's stock. Robotaxis Some investors believe Tesla has little competition in the US robotaxi industry and its fleet of millions of cars on the roads that can be converted to robotaxis with a software upgrade, giving it an advantage over other automakers and ride-sharing platforms. But as it did with EVs, Tesla could face competition in China from BYD, the country's largest EV maker, and a dozen other companies that have rolled out driver-assistance systems designed to navigate its densely packed urban areas. Tesla has divulged few details about its self-drive strategy. "They might continue being a little bit quiet about it they are in the negotiations with OEMs for licensing but I think eventually FSD adoption rates and other numbers will be broken out," said Jamie Meyers, senior analyst at Tesla shareholder Laffer Tengler Investments. The company could be years away from releasing a fully autonomous vehicle with regulatory approval, experts in self-driving cars and regulation have said. Self-driving companies, including General Motor's Cruise, have faced technical and regulatory hurdles, and robotaxis could bring fresh challenges for Musk, who recently endorsed Donald Trump for US President. "Biggest hurdle for FSD and robotaxis will be getting regulatory approvals. Trump administration could help to move that along quickly," said Dennis Dick, equity trader at Triple D Trading said, who has a long position in Tesla. Affordable cars, deliveries growth Tesla announced in April a strategic shift in its vehicle development, opting to introduce "new models" by early 2025 utilizing existing car platforms and production lines, diverging from previous plans for an entirely new model. "Investors are looking for a really positive outlook into the future, with some near-term surprises that can be implemented quickly and I think with the new lower cost model, they're going to want to see progress on that," GraniteShares' Marino said. Tesla handed over more cars to customers than analysts expected in the three months to June, but deliveries were about 5% lower than a year earlier. Analysts largely expect the company to a small increase in deliveries this year from 2023. To match its 2023 delivery record of 1.81 million vehicles, Tesla needs to deliver at least 977,815 vehicles in the second half of this year. "I think deliveries will grow fractionally for full year 2024 and grow around 15% in calendar 2025. The most important part is that they talk about September deliveries returning to growth," Gene Munster, managing partner at Deepwater Asset Management, said.

Tesla margins likely dipped in Q2; robotaxi, AI ventures in focus

Tesla's (TSLA.O), opens new tab second-quarter margin hit a more than five-year low, the electric vehicle maker is likely to report on Tuesday, and its CEO Elon Musk is expected to double down on the company's robotaxi plans and AI products. Discounts to clear inventory, price cuts and incentives such as cheaper financing options offered to boost EV sales have squeezed Tesla's margin over the past two years, while sales dropped as customers grew tired of its old model lineup. Advertisement · Scroll to continue The company is laying off 10% of its global workforce, a memo revealed in April. Now, investors will want to hear more on Tesla's pivot to self-driving technology and how that could once again set the company apart from other automakers and fuel the sort of rally in its stock that propelled it to a record high in 2021. Musk had announced earlier this year that Tesla would unveil its robotaxi on Aug. 8, but signaled last week the automaker would take more time to incorporate a design change following a media report that the launch was delayed to October. Advertisement · Scroll to continue Wall Street expects Tesla's automotive gross margin, excluding regulatory credits, to have slipped to 16.27% in the April-June period, its lowest since the first quarter of 2019, according to 20 analysts polled by Visible Alpha. Profit margin for vehicle sales, excluding the sales of regulatory credits, was 16.36% in the January-March period and 18.14% in the second quarter of 2023. Tesla's discounted financing at a time when interest rates are high "represents an even less visible price cut", Bernstein analyst Toni Sacconaghi said in a note earlier this month. Stellantis ready to fight for its place in Europe, CEO says This cost will be "realized gradually over the life of the loan, effectively pushing out margin pressure into future periods," he said. Margins are likely to bottom by the end of this year and start to increase next year, analysts said, as costs associated with a production ramp-up of the Cybertruck eases. "AI and robotaxi is such a huge opportunity over the next two, three, five years. So if you're a long-term believer, you're going to take the margins like your medicine," said Paul Marino, Chief Revenue Officer of GraniteShares, which offers funds related to Tesla's stock.

Tesla margins likely dipped in Q2; robotaxi, AI ventures in focus

The company is laying off 10% of its global workforce, a memo revealed in April. Now, investors will want to hear more on Tesla's pivot to self-driving technology and how that could once again set the company apart from other automakers and fuel the sort of rally in its stock that propelled it to a record high in 2021. Musk had announced earlier this year that Tesla would unveil its robotaxi on Aug. 8, but signaled last week the automaker would take more time to incorporate a design change following a media report that the launch was delayed to October. Wall Street expects Tesla's automotive gross margin, excluding regulatory credits, to have slipped to 16.27% in the April-June period, its lowest since the first quarter of 2019, according to 20 analysts polled by Visible Alpha. Profit margin for vehicle sales, excluding the sales of regulatory credits, was 16.36% in the January-March period and 18.14% in the second quarter of 2023. Tesla's discounted financing at a time when interest rates are high "represents an even less visible price cut", Bernstein analyst Toni Sacconaghi said in a note earlier this month. This cost will be "realized gradually over the life of the loan, effectively pushing out margin pressure into future periods," he said. Margins are likely to bottom by the end of this year and start to increase next year, analysts said, as costs associated with a production ramp-up of the Cybertruck eases. "AI and robotaxi is such a huge opportunity over the next two, three, five years. So if you're a long-term believer, you're going to take the margins like your medicine," said Paul Marino, Chief Revenue Officer of GraniteShares, which offers funds related to Tesla's stock. Some investors believe Tesla has little competition in the US robotaxi industry and its fleet of millions of cars on the roads that can be converted to robotaxis with a software upgrade, giving it an advantage over other automakers and ride-sharing platforms. But as it did with EVs, Tesla could face competition in China from BYD, the country's largest EV maker, and a dozen other companies that have rolled out driver-assistance systems designed to navigate its densely packed urban areas. Tesla has divulged few details about its self-drive strategy. "They might continue being a little bit quiet about it they are in the negotiations with OEMs for licensing but I think eventually FSD adoption rates and other numbers will be broken out," said Jamie Meyers, senior analyst at Tesla shareholder Laffer Tengler Investments. The company could be years away from releasing a fully autonomous vehicle with regulatory approval, experts in self-driving cars and regulation have said. Self-driving companies, including General Motor's Cruise, have faced technical and regulatory hurdles, and robotaxis could bring fresh challenges for Musk, who recently endorsed Donald Trump for US President. "Biggest hurdle for FSD and robotaxis will be getting regulatory approvals. Trump administration could help to move that along quickly," said Dennis Dick, equity trader at Triple D Trading said, who has a long position in Tesla. Tesla announced in April a strategic shift in its vehicle development, opting to introduce "new models" by early 2025 utilizing existing car platforms and production lines, diverging from previous plans for an entirely new model. "Investors are looking for a really positive outlook into the future, with some near-term surprises that can be implemented quickly and I think with the new lower cost model, they're going to want to see progress on that," GraniteShares' Marino said. Tesla handed over more cars to customers than analysts expected in the three months to June, but deliveries were about 5% lower than a year earlier. Analysts largely expect the company to a small increase in deliveries this year from 2023. To match its 2023 delivery record of 1.81 million vehicles, Tesla needs to deliver at least 977,815 vehicles in the second half of this year. "I think deliveries will grow fractionally for full year 2024 and grow around 15% in calendar 2025. The most important part is that they talk about September deliveries returning to growth," Gene Munster, managing partner at Deepwater Asset Management, said. (Reporting by Akash Sriram in Bengaluru; Editing by Sayantani Ghosh and Arun Koyyur)

Tesla earnings preview: Will Musk talk Trump, robotaxis?

Morningstar's Seth Goldstein isn't expecting many updates on either front. He's eager, however, to hear whether Tesla is still on schedule to produce a more affordable vehicle, which he believes is crucial to the company's chances of boosting falling deliveries. "Of course, anytime you hear Elon Musk speak, there could be some unexpected topics," Goldstein said. After a massive rally earlier this month, powered in part by robotaxi hype and second-quarter delivery numbers that beat (low) expectations, Tesla's stock rebounded from a disastrous first quarter and erased its year-to-date losses. Consensus estimates have Tesla's diluted earnings per share for Q2 at $0.58, per Bloomberg, down from $0.91 in the same quarter last year. According to Bloomberg, options trading implies the stock could move about 8% in either direction after Tuesday's call. The company missed revenue and EPS estimates last quarter, but the stock still jumped in extended trading after Musk touted Tesla's AI potential and said the affordable vehicle could arrive earlier than expected. Shareholders might question, however, if Musk's support of Republican presidential nominee Donald Trump, as well as his hostilities with California's left-leaning government, could threaten Tesla's growth. Musk announced last week that he was moving the headquarters of SpaceX and X Corp. (formerly Twitter) to Texas after California Gov. Gavin Newsom signed a new state law that bans school districts from requiring teachers to disclose a student's gender identity or sexual orientation to their parents. Tesla sales in California have fallen for three straight quarters, raising concerns about whether Musk is alienating potential customers in a state where the EV share of the new car market is nearly triple the U.S. average. "I think that's a very fair question," Goldstein said. "I'm not sure if it will be asked." Then there's the question of Musk's support for a president who spent a portion of his speech at the Republican National Convention bashing the EV industry. Trump has pledged to undo the Inflation Reduction Act that President Joe Biden signed into law in August 2022, which made Tesla customers eligible for as much as $7,500 in federal tax credits. Last year, Tesla discounted the price of its Model X by over $40,000 so buyers could take advantage of the credit. Getting rid of these subsidies would clearly hurt Tesla, Goldstein said. The flip side, he said, is that their removal would likely be much worse for the competition, which perhaps explains why Musk is comfortable publicly calling for them to go. Tesla received about $1.8 billion in production tax credits last year, more than three times what General Motors received. Ford isn't eligible for the credits until 2025. Another high-profile business name to get behind Trump, ARK Invest CEO Cathie Wood, has boosted the hype around Tesla's plans for an autonomous taxi platform, saying it will be the catalyst for a roughly 10-fold increase in its share price. Musk already announced the robotaxi unveiling has been postponed from August to October, though, so Goldstein isn't expecting many more details. "That leaves Tesla's other growth driver as the affordable vehicle," Goldstein said. With deliveries down 5% year-on-year as of last quarter, he noted, the production of a car priced somewhere in the mid-$30,000 range could help Tesla reach a much larger market, where mid-sized SUVs like the Toyota RAV4 and Honda CR-V have sold very well. During Tesla's previous earnings call, Musk told investors production would probably begin "by early 2025, if not late this year," per the Guardian. That would likely mean truly ramping up production in 2026, Goldstein said. He'll be waiting on Tuesday to see if Tesla gives any indications its sticking to that timeline.

Tesla Analyst Asks 'Do Earnings Matter?' Ahead Of Q2 Report: Robotaxis, China, EV Guidance In Focus - Tesla (NASDAQ:TSLA)

A Tesla analyst sees the company's report all about the future and not about the past results. Ahead of second-quarter financial results, a Tesla Inc TSLA analyst says investors aren't focused on earnings, but rather what comes next after Tuesday's report. The Tesla Analyst: Guggenheim analyst Ronald Jewsikow reiterated a Sell rating on Tesla and $134 price target. The Analyst Takeaways: Investors will be focused on what comes next for Tesla and not the past earnings, Jewsikow said. Read Also: EXCLUSIVE: Tesla 'An Elon Musk And A Technology Story First, EV Story Last' -- Market Strategist Explains Why To Buy The Stock The analyst said Tesla delaying the robotaxi event from Aug. 8 will be top of mind for investors. "With the planned 8/8 event now formally delayed, investors will look for color on the new timeline, what to expect at the event and more details on the delay," Jewsikow said. The delay in the Robotaxi event has led to investors seeing the segment as less actionable, according to the report. The analyst said 2024 volume guidance could also be a key item to watch in the earnings report. "We don't believe guiding for y/y volume growth is realistic, but we do not see CEO Elon Musk indicating negative volume growth as his forecast." China and market share in the country could also be a key focus in the earnings report, the analyst said. "How does TSLA return to growth with so much competitively priced product in China?" The analyst expects Tesla to beat earnings per share estimates and miss on automotive gross margins (ex-credits) due to "large discounting actions." Jewsikow currently ascribes no value to robotaxis, robots, artificial intelligence or insurance when forecasting a price target on Tesla. TSLA Price Action: Tesla shares are down 1% to $249.25 on Tuesday versus a 52-week trading range of $138.80 to $278.98. Tesla stock is up 0.3% year-to-date in 2024, after gaining over 30% in the past month, as seen on the Benzinga Pro chart below. Read Next: Turn Trading Into The Ultimate Side Hustle Using Benzinga Tools In A Free Webinar Market News and Data brought to you by Benzinga APIs

Tesla reports earnings after the bell. Here's what Wall Street has to say

Investors will be keeping a close eye on Tesla 's second-quarter results due postmarket Tuesday amid an intensely competitive electric vehicle market. Analysts expect Tesla to post 62 cents in earnings per share on $24.77 billion in revenue. Although the revenue estimate is slightly higher than the $21.30 billion Tesla posted in the first quarter, the earnings forecast is 30% below the previous year. Last quarter, Tesla reported adjusted earnings of 45 cents per share on a 9% decline in revenue to $21.30 billion compared with the fourth quarter. Tesla released second-quarter delivery numbers in June, its closest approximation to sales. Shares rallied on better-than-expected second quarter deliveries , but later sold off after CEO Elon Musk said Tesla would push back the debut of its Robotaxi. Tesla is now little changed on the year. TSLA YTD mountain Tesla shares in 2024 With the delay of the Robotaxi, the upcoming earnings are a "significantly more actionable near-term catalyst," Guggenheim analyst Ronald Jewsikow wrote in a note earlier this month. Guggenheim rates Tesla a sell with a 12-month price target of $134, implying the shares will plunge more than 46% from Monday's close. "If the schedule for a physical prototype or securing some form of credible end market testing is slipping, how can investors gain confidence in the promises of a Robotaxi future? We continue to believe Robotaxis at scale will be a 2030 and beyond event," Jewsikow added. Other analysts also believe that the fundamental business outlook for Tesla remains cloudy. "2Q stands to force investors to at least consider still-challenged fundamentals, and we see risk of stock reversion to the extent results disappoint," Barclays analyst Dan Levy wrote. "Indeed, 2Q may reaffirm continued pressure on margins, even if they are near a trough." Levy rates Tesla equal weight. Despite the excitement surrounding Tesla's pivot toward autopilot vehicles and artificial intelligence, Levy believes it's unclear how long this momentum can drive the stock -- and said weak, near-term sales volumes create "considerable uncertainty." Evercore's Chris McNally also sees further downside to Tesla shares. The delay of the Robotaxi to October from early August has slowed momentum, according to McNally. The second quarter "does not look any easier," McNally said, as "demand/production continues to flatline and has essentially been the same 425-445k for seven straight quarters now, with [the] expectation that Q3 will be similar." The analyst has an in line rating and $145 price target on Tesla, suggesting 42% potential downside from Monday's close. The rally that propelled Tesla shares in June and July was simply "retail puppy love" on the part of individual investors, according to Wells Fargo analyst Colin Langan. In addition to weak fundamentals, Langan highlighted new U.S. and EU tariffs on electric vehicle batteries as a headwind for Tesla. Investors thus far have "ignored the impact" of the tariffs, according to Langan, who forecasts they will raise costs by $570 million in 2024 and $1.2 billion in 2025. The U.S. presidential election also poses a headwind -- the analyst forecasts a Trump win as a risk to Tesla, given his plans to curb President Joe Biden's Inflation Reduction Act. To be sure, several analysts are bullish on Tesla. Morgan Stanley's Adam Jonas, for example, carries an overweight rating on shares. Tesla is starting to receive recognition as more than just a car company, and as a broader AI play, according to Jonas. "Investors are starting to consider the potential for Tesla to be an expression on the AI theme. But recent indicators of climate change are bringing even greater attention to Tesla's dominant position in energy storage," Jonas said in a note this month. Jonas holds a $310 price target on Tesla shares, indicating 23% potential upside from Monday's close. -- CNBC's Michael Bloom contributed to this report.

Tesla Q2 Earnings Preview: Analyst Estimates, Key Items To Watch, Can 'Major Turning Point' In Bull Case Continue? - Tesla (NASDAQ:TSLA)

After beating analysts' estimates for Q2 deliveries, attention could turn to AI, energy and other non-vehicle storylines. All eyes could be on Tesla Inc's TSLA non-vehicle segments and political catalysts when the company reports second-quarter financial results after market close Tuesday. Here are the earnings estimates, what analysts are saying and key items to watch. Earnings Estimates: Analysts expect Tesla to report second-quarter revenue of $24.93 billion, according to data from Benzinga Pro. Tesla reported revenue of $24.73 billion in last year's second quarter. The company has missed analysts' revenue estimates in three straight quarters. Analysts expect the company to report second-quarter earnings per share of 62 cents, compared to 91 cents per share in last year's second quarter. The company has missed analysts' earnings per share estimate in three straight quarters. Read Also: EXCLUSIVE: Tesla 'An Elon Musk And A Technology Story First, EV Story Last' -- Market Strategist Explains Why To Buy The Stock What Analysts Are Saying: Analysts have been mixed on Tesla in recent months. The electric vehicle company beat analysts' estimates for second quarter deliveries. Tesla reported second-quarter deliveries of 443,956, which was down 4.8% year-over-year and up 14.8% quarter-over-quarter. A five percent decline in deliveries "never looked so good," Guggenheim analyst Ronald Jewsikow said after the Tesla figure was reported. The analyst, who had a sell rating, raised the price target from $126 to $134 "with demand headwinds persisting." Jewsikow was one of several analysts who praised the energy segment for Tesla, with the company now reporting energy storage alongside deliveries and production figures ahead of earnings. The analyst said Tesla stock is likely moving higher more from the energy storage figure than the delivery figure. Investors could begin to pay more attention to Tesla Energy, Morgan Stanley analyst Adam Jonas said in a recent note. The analyst, who had an Overweight rating and $310 price target, said Tesla Energy could be worth $36 per share, or around $130 billion. The analyst sees Gen AI acceleration helping lead to an increase in energy demand, electricity generation, and data center investment. Wedbush analyst Dan Ives has an Outperform rating and recently raised the price target from $275 to $300. "After a very choppy start to 2024 for Musk & Co. we believe the Tesla demand story has made a significant turn for the positive with stronger than expected 2Q deliveries this morning [July 2] marking a 'major turning point' in the Tesla bull case story," Ives said. Key Items to Watch: Analysts have already dissected the Q2 delivery and production figures, which could lead to less focus on the electric vehicle storyline. One area of focus could be the Cybertruck, which isn't currently individually broken out in quarterly figures. The company could update on how many it has sold and how many are reserved. Tesla is also nearing delivery of the electric pickup truck in Canada, adding another market to sales. Outside of vehicles, energy and artificial intelligence could be key focuses as many analysts praised the large energy storage figure reported ahead of the earnings. Tesla is delaying its robotaxi event, originally set for Aug. 8, until October. The company could share more on what went into the decision and what is expected at the event. Musk's recent endorsement of Donald Trump for president in the 2024 election and reports of donations could also be a key focus of questions, with many experts noting that Trump could be bad for the electric vehicle sector. The Tesla CEO recently said that he supports subsidies going away, as it would benefit the company. TSLA Price Action: Tesla shares are up 5% to $251.73 on Monday, versus a 52-week trading range of $138.80 to $299.29. Tesla shares are up 1.2% year-to-date in 2024 after gaining 33.9% over the last month, as seen on the Benzinga Pro chart below. Read Next: Turn Trading Into The Ultimate Side Hustle Using Benzinga Tools In A Free Webinar Image created using artificial intelligence via Midjourney. Market News and Data brought to you by Benzinga APIs