The managing director of The Future Fund LLC, Gary Black, anticipates a positive stock reaction for Tesla Inc. following the upcoming earnings call. Black forecasted adjusted earnings per share of 39 cents and an automotive gross margin of 13.3% excluding regulatory credits.
Key Points to Watch
- Robotaxi Progress: Black emphasized the importance of Tesla’s comments on Robotaxis during the earnings call, specifically the removal of safety drivers in Austin.
- Level 4 Autonomy: Achieving Level 4 autonomy would enable Tesla to expand its service network and reiterate the capabilities of its robotaxis.
- New Affordable Model: Black expects a new affordable Tesla model, potentially based on the Model Y, but notes it won’t expand the company’s total addressable market unless it’s a new form factor.
Recent Performance
Tesla is gearing up for its second-quarter earnings call, with expected revenue of $22.79 billion. However, the company has missed revenue estimates for three consecutive quarters. Additionally, Tesla experienced:
- A near 20% decline in sales in China
- A 12% decline in second-quarter sales in the U.S.
- Risks losing its license to sell cars in California amid a lawsuit over false advertising of its Autopilot and FSD systems
Insights and Rankings
Tesla offers satisfactory momentum and quality, while scoring well on the growth metric. However, it offers poor value. For more insights, consider signing up for stock rankings services.
Related News
- Tesla’s efforts to expand its services and improve its financial performance will be closely watched in the upcoming earnings call.
- The company’s progress on robotaxis and autonomous driving technology will be a key factor in its future growth and success.