Tesla is gearing up to unveil its second-quarter earnings after the market closes on Tuesday. Analysts from LSEG have predicted that the company will report earnings per share of 62 cents and revenue of $24.77 billion. This comes after a turbulent first half of the year for Tesla, which saw a reduction in workforce and a decline in vehicle deliveries in the first and second quarters. Despite this, Tesla managed to surpass analysts’ expectations by reporting 443,956 vehicle deliveries in the second quarter, marking a 4.8% decrease from the previous year.
While Tesla remains the top electric vehicle seller in the U.S., the company is facing stiff competition from a growing number of rivals. Part of this is attributed to Tesla’s aging lineup of sedans and SUVs, as well as CEO Elon Musk’s controversial political statements that have alienated some left-leaning buyers. Musk’s endorsement of former President Donald Trump and reported plans to support a super PAC backing Trump have further strained Tesla’s standing among certain consumer segments.
Beyond its core business of manufacturing and selling electric vehicles, Tesla has ventured into other areas such as energy generation and storage. The company reported significant growth in its energy products division, deploying 9.4 GWh of energy products in the second quarter. Additionally, Musk has been vocal about Tesla’s ambitions to develop self-driving vehicles through software updates and introduce humanoid robots for factory work. These initiatives are part of Tesla’s broader strategy to expand its offerings beyond just cars.
As Tesla prepares to announce its earnings, investor sentiment remains mixed. While Tesla’s stock closed 5% higher on Monday in anticipation of the earnings call, Wall Street analysts are divided on the company’s outlook. Out of the 50 analysts covering Tesla, only 22 have buy or strong buy ratings, indicating the uncertainty surrounding Tesla’s future performance.
Tesla’s second-quarter earnings call will be a crucial moment for the company to reassure investors about its financial health and strategic direction. Despite facing challenges in the competitive electric vehicle market and controversies surrounding its CEO, Tesla continues to push boundaries with its innovative technologies and ambitious plans for the future. The coming earnings report will shed light on Tesla’s progress and provide insights into the company’s trajectory in the ever-evolving automotive industry.