Tesla Inc shares are trading flat as investors await the electric vehicle giant’s second-quarter financial results. This article will outline what investors need to know about the upcoming earnings report.
What to Expect
While the headline numbers are expected to show a decline, the focus has shifted towards the company’s future growth initiatives. These initiatives include its robotaxi service and broader artificial intelligence ambitions. Analysts project revenue of $22.79 billion and earnings of 42 cents per share, representing significant year-over-year drops.
Recent Performance
The company has already reported a drop in second-quarter vehicle deliveries to 384,122 units, down from over 443,000 in the same period last year. This follows a trend of underperformance, with Tesla missing revenue and earnings estimates in most of the last seven quarters.
Analyst Sentiment
Some analysts remain bullish, with Wedbush’s Dan Ives maintaining an Outperform rating. He argues that the focus is on CEO Elon Musk’s “wartime” leadership and the recent robotaxi launch in Austin. Ives believes Tesla’s autonomous technology alone could be worth $1 trillion, positioning the company as an AI and robotics leader.
However, sentiment is mixed, with Guggenheim reiterating a Sell rating. Investors will also be watching for updates on Cybertruck production, the impact of fading EV tax credits, and the company’s outlook for 2025. Any commentary from Musk on a potential investment in his xAI venture will likely be closely scrutinized.
Stock Profile
According to proprietary data, Tesla’s stock profile is a tale of extremes. The company receives an exceptionally high score for Growth, indicating strong future expansion and profitability prospects. However, it has a very low Value score, suggesting the stock is trading at a significant premium to its underlying financial fundamentals.
Price Action
Tesla shares are trading flat at $333.55. The stock has a 52-week high of $488.54 and a 52-week low of $182.00.
How to Buy TSLA Stock
Besides going to a brokerage platform to purchase a share of stock, you can also gain access to shares by buying an exchange-traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Tesla’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Conclusion
Tesla’s upcoming earnings report will be closely watched by investors, with a focus on the company’s future growth initiatives and autonomous technology. While some analysts remain bullish, others are more cautious, highlighting the uncertainty surrounding the company’s prospects.