Tesla (TSLA) stock took a tumble of more than 11% following the release of its mixed second quarter results. The company reported revenue of $25.05 billion, falling short of the expected $24.63 billion, and adjusted profits were also below estimates at $0.52 versus $0.60 expected. Despite these numbers, Tesla remains on track for the production of new vehicles, including a potentially cheaper EV, in the first half of next year.
The market had been anticipating the debut and release of a more affordable electric vehicle, which many analysts believe will drive the next wave of EV sales, including Tesla CEO Elon Musk. During the earnings call, Musk mentioned that the company would unveil its robotaxi on October 10, after delaying the original reveal date of August 8. This robotaxi will utilize the “unboxed manufacturing strategy” previously discussed.
Despite the stock’s recent drop, analysts like Dan Ives from Wedbush remain positive on Tesla’s outlook, linking the company’s success to advancements in AI and full self-driving technology. Ives noted that reaching a $1 trillion or higher valuation relies on Tesla’s ability to monetize these advancements in the near future.
In terms of production and delivery, Tesla’s Cybertruck saw production numbers more than triple compared to Q1, with the vehicle expected to achieve profitability by the end of the year. Additionally, the Semi factory is on track to kick off production by the end of 2025. In the second quarter, Tesla delivered 443,956 vehicles globally, surpassing estimates and showing improvement from Q1.
One surprising highlight from Tesla’s Q2 report was the record deployment of 9.4 GWh of battery energy storage, double the amount from the previous quarter. This development caught the attention of analysts like Adam Jonas from Morgan Stanley, who dubbed it a “show stealer.”
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