Tesla is gearing up to unveil its second-quarter earnings report after the closing bell on Tuesday. Analysts surveyed by LSEG are anticipating earnings per share of 62 cents and revenue of $24.77 billion.
The first half of the year proved to be rocky for Tesla, with the EV maker cutting over 10% of its workforce and experiencing declines in vehicle deliveries in both the first and second quarters. However, despite these challenges, Tesla managed to report vehicle deliveries totaling 443,956 in the second quarter, which although marked a 4.8% decrease from the same period the previous year, exceeded analysts’ expectations.
In addition to its vehicle deliveries, Tesla’s energy generation and storage division made significant strides by deploying 9.4 GWh of energy products in the second quarter, more than doubling its previous record. This division, which focuses on the sale and installation of backup batteries and solar photovoltaics, contributed positively to Tesla’s overall performance for the quarter.
While Tesla continues to dominate the electric vehicle market in the U.S., the company is facing increased competition from a growing number of rivals. Market share loss is partially attributed to an aging lineup of sedans and SUVs, as well as controversial statements made by CEO Elon Musk, which have alienated some of the brand’s left-leaning buyers.
Other Bets and Future Plans
Despite challenges in its core business, Tesla remains committed to its long-term strategy of expanding beyond automotive manufacturing. Musk has outlined plans to transform existing EVs into self-driving vehicles through software updates, with the introduction of a dedicated robotaxi expected later this year. Furthermore, Tesla aims to develop humanoid robots capable of factory work, with prototypes slated to be operational in its factories by next year.
Ahead of the earnings call, Tesla’s stock closed 5% higher on Monday, reflecting positive investor sentiment. However, Wall Street analysts are divided on the company’s future prospects, with only 22 out of 50 analysts maintaining buy or strong buy ratings for Tesla.
While Tesla faces challenges in maintaining its market share and brand image, the company’s strategic initiatives in energy generation, autonomous vehicles, and robotics demonstrate a commitment to innovation and growth. The second-quarter earnings report will provide more insights into Tesla’s financial health and future trajectory.