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Tesla (TSLA) reported second quarter adjusted earnings per share of $0.52, missing Street expectations of $0.60. Free cash flow also fell short, $1.34 billion versus the estimated $1.92 billion.
Revenue, however, was a beat of $25.50 billion versus the estimated $24.63 billion. Gross margin of 18% was better than the expected 17.4%.
In the release, the company says "our focus remains on company-wide cost reduction, including reducing COGS per vehicle, growing our traditional hardware business and accelerating development of our AI-enabled products and services. Though timing of Robotaxi deployment depends on technological advancement and regulatory approval, we are working vigorously on this opportunity given the outsized potential value."
Market Domination Overtime anchors Julie Hyman and Josh Lipton break down Tesla's latest quarterly earnings report.
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to that. We're just getting the latest numbers from Tesla just crossing here and it's big miss on the bottom line at least. 52 cents a share, 60 cents is what had been anticipated here. The other thing to zero in on here is the gross margin number here. 18%. That is above estimates of 17.4%. So we'll have to kind of dig here and here and figure out where the earnings per share miss comes from if the margins are ahead of estimates, if you see what I mean there. Uh the company says that it still sees notably lower volume growth for 2024 that the rate of volume growth will be lower for 2024. Um and the company is remaining focused on company-wide cost reductions. So that might be something that the street likes to hear here. Plans for new vehicles, it says remain on track. Um I believe it's still talking about the first half of 2025 and it says Robo taxi will continue its unboxed manufacturing strategy. It expects a sequential increase in production in the third quarter. So a lot of color coming in this commentary, not just the numbers, revenue by the way, $25 and a half billion dollars slightly ahead of the $24.6 billion that had been estimated. The shares down about two and a half percent right now, but I expect a little bouncing around there as come as investors try to sift through this and figure out what it means.
Yeah, this is another name I'm down here in the after hours, but you're heading into this print. I mean, the stock, yes, basically flat year today, Julie, but the recent run-up, it was up about 35% in just the past month heading into this print. Now, now we're back to basically flat here in the after hours. I think some key questions here, you know, on do you think Q1 was, you know, was that the EV trough? Do you think, you know, better times are ahead generally for for the vehicles? And also those new vehicles on the way. Certainly plenty of questions there, which are going to be built as, you know, relatively more affordable. What what is actually more affordable mean and and what's the impact on volumes, margins?
Uh the company is giving uh or excuse me, is giving more details on its automotive gross margin X regulatory credits, um which it puts it 14.6% last quarter. Um so again here, top the the big headlines here, earnings per share missing estimates for Tesla. Um gross margin beating estimates by a bit here and revenue also beating estimates. Also that the company says sequentially production will rise in the third quarter versus the second quarter.
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This post was written by Stephanie Mikulich.