Tesla (TSLA) experienced a notable decline in its stock value after releasing mixed second-quarter results. Despite the lukewarm financials, the company affirmed its ambitious plans for launching new, more affordable electric vehicles (EVs) by mid-2025. However, Tesla also cautioned that its growth rate in 2024 would be significantly lower compared to 2023.

Financial Performance Overview

For Q2, Tesla reported:

• Revenue: $25.05 billion, slightly exceeding the expected $24.63 billion and surpassing last year’s $24.93 billion.
• Adjusted Earnings Per Share (EPS): $0.52, falling short of the anticipated $0.60.
• Non-GAAP Net Income: $1.8 billion.

This financial disclosure led to a 4% drop in Tesla’s share price during after-hours trading.

Upcoming Affordable EVs

Tesla announced that its plans to produce new, cost-effective vehicles are on track for a 2025 debut. These new models will incorporate features from both the next-generation and current platforms, allowing them to be manufactured on existing production lines.

“Plans for new vehicles, including more affordable models, remain on track for the start of production in the first half of 2025,” Tesla stated in its Q2 earnings report.

Robotaxi and Manufacturing Innovations

Tesla CEO Elon Musk revealed that the much-anticipated robotaxi unveiling, initially set for August 8, has been postponed to October 10. This delay is intended to allow for additional enhancements to the vehicle. The robotaxi will showcase Tesla’s “unboxed manufacturing strategy.”

Market Reactions and Analyst Insights

The debut of a more affordable EV is widely expected to boost EV sales, a sentiment echoed by many analysts and industry experts, including Elon Musk. Wedbush analyst Dan Ives emphasized the significance of the robotaxi’s timely release for Tesla’s valuation trajectory.

“Addressing the delay in Robotaxi Day and the new timing will be important… a linchpin to Tesla reaching $1 trillion+ valuation,” Ives commented.

Other Vehicle Updates

• Cybertruck: Production tripled from Q1, with profitability projected by year’s end.
• Semi Factory: On schedule to start production by the end of 2025.

Vehicle Deliveries

Tesla delivered 443,956 vehicles globally in Q2, surpassing the Bloomberg consensus estimate of 439,302. Although this marked a nearly 5% decline from the previous year, it represented a significant increase from the 386,810 vehicles delivered in Q1.

“We believe the Tesla demand story has made a shift for the positive after a rough last 6-9 months,” Ives noted, highlighting the stronger-than-expected Q2 deliveries as a turning point for the company’s future outlook.

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Market Summary

Tesla, Inc. (TSLA)

• NASDAQ Real-Time Price: $246.38 (-2.04%)
• After Hours: $227.25 (-7.76%)