Tesla misses, extending weak start to 2024 Bloomberg Tesla...

Tesla misses, extending weak start to 2024

Bloomberg


Tesla missed Wall Street profit estimates in the second quarter, extending a worse-than-normal start to the year marked by slower sales and mass firings across the company.

The electric-vehicle maker reported adjusted earnings of US52¢ a share, short of the average analyst estimate of US60¢ a share. Tesla’s revenue increased to $US25.5 billion, more than the $US24.6 billion analysts were expecting.

In a post on X, Deepwater Management’s Gene Munster said Tesla’s ” quarter big negative is auto gross margins ex-credits were 14.6 per cent v Street (Factset) at 16.9 per cent and 16.4 per cent last quarter.

“Going into the quarter I felt anything above 16 per cent would be fine. Even though the Tesla investment case is about what is to come in 2025 and beyond, the margins topic will be the ‘A’ topic on the call [with analysts]“.
The company reiterated it sees a “notably lower” growth rate for 2024.

The Elon Musk-led company already reported second-quarter sales that beat analyst expectations and sent the stock soaring. While sales were down from a year ago, Tesla improved on a sequential basis from the first three months of the year. Stronger purchases were partly spurred by a series of price cuts, that cut into the company’s margins.

Tesla shares continued to rally in the days following the early July sales report. Investors have bought into Musk’s promises that fully autonomous robotaxis and humanoid robots are around the corner, reversing a year-to-date stock price decline. At one point in 2024, shares were down more than 40 per cent from the end of last year as a result of Tesla’s weaker vehicles sales.