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Tesla expected to report drop in Q2 earnings as investors eye margins, Robotaxi update

Published 2024-07-17, 03:50 p/m
© Reuters.  Tesla expected to report drop in Q2 earnings as investors eye margins, Robotaxi update
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Proactive Investors - Tesla Inc (NASDAQ:TSLA) is expected to report a more than 30% year-over-year decline in earnings when it hands down its financial results for the second quarter after the stock market closes on Tuesday, July 23.

Wall Street analysts expect the electric vehicle maker to post earnings per share of $0.62, down from $0.91 in the same period last year.

Net income is expected to be $1.73 billion, down from $2.7 billion in 2023 due to higher restructuring and research and development costs.

Revenue is seen edging 0.8% higher from the year-ago quarter to $25.1 billion.

Another key metric to watch will be Tesla’s margins, which have taken a hit in recent quarters due to the company’s series of price cuts aimed at stimulating demand for its EVs.

The company’s first quarter margins more than halved to 5.5% from 11.4% for the same period in 2023.

Investors will also be looking out for an update on Tesla’s autonomous taxi platform, known as Robotaxis, after CEO Elon Musk confirmed earlier this week that an August 8 event where it was expected these vehicles would be debuted was postponed.

Tesla shares traded hands at about $247 on Wednesday, roughly where they started the year.

After a massive sell-off of the stock amid concerns about waning demand for EVs, which is hitting sales and profits, Tesla shares were boosted almost 40% in the last month by better-than-expected deliveries for Q2.

Read more on Proactive Investors CA

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