Is Tesla A Buy After Disappointing Earnings?
πππ$Tesla Motors(TSLA)$
Tesla's share price fell almost 8% post earnings and is down 2.5% in the past 5 days. However Tesla is still up 34.9% for the month.
Tesla' s revenue increased 2% to USD 25.5 billion from USD 24.93 billion a year ago. Earnings per share adjusted for the quarter was 52 cents versus 62 cents expected by Wall Street Analysts.
Tesla's automotive revenue dropped 7% to USD 19.9 billion from USD 21.27 billion in the previous year quarter. Auto revenue included regulatory credits of USD 890 million, which was more than 3 times the figure from the previous year.
Elon Musk, CEO of Tesla said that he will be unveiling Robotaxi's latest updates on October 10 instead of the original August 8 event.
During the quarter, Tesla offered discounts and other incentives including subsidised financing deals in China and US in order to increase demand. These deals have resulted in a hit to Tesla's profitability. Tesla adjusted earnings margin has fallen to 14.4% from 18.7% in the latest quarter.
Net income declined 45% to USD 1.48 billion or 42 cents a share in the quarter from USD 2.7 billion or 78 cents a share in the previous year.
However revenue in Tesla 's energy generation and storage business has almost doubled from the previous year quarter to just over USD 3 billion.
Tesla increased production of its newest EV model - the Cybertruck which is now on track to achieve profitability by end of 2024.
Another good news is that Tesla's new lower priced model code named Model 2 is still on track to meet its timeline which is the first half of 2025.
Even though Tesla's core EV business has dropped, Tesla is spending heavily on data centres and research to help develop self driving robotaxis and humanoid robots. Tesla plans to spend USD 10 Billion alone on AI related expenditure.
Tesla is more than just an EV company and if its future projects on Robotaxis and robots come to fruition, Tesla's shares will take off like a Space X Rocket to the moon!
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So sad it dropped so much⦠be careful now maybe back to 180