Topline
Analysts project a double-digit drop for Tesla’s top and bottom lines when the company reports second-quarter earnings after market close Wednesday, after Elon Musk’s automaker reported a historic decline in quarterly deliveries in the wake of Musk’s alliance with Trump and their fallout.
Economists expect double-digit drops for the automaker’s top and bottom lines after a record decline … More
Key Facts
Tesla is expected to report $0.40 earnings per share and $22.28 billion in revenue for its second quarter, according to FactSet, which would represent a year-over-year decline of 23% and 13%, respectively.
Economists project Tesla’s operating profit to decline 31% year-over-year to $1.1 billion and for its core automotive business to plunge 16.5%.
A far-from-bullish estimate for Tesla’s earnings follows the company reporting a 13% decline in second-quarter deliveries earlier this month, surpassing the automaker’s largest year-over-year record set in the first quarter while reporting deliveries well below consensus forecasts.
Crucial Quote
Wedbush Securities analyst Dan Ives wrote Tuesday the “set-up” to Tesla earnings is a “dramatically different one than three months ago,” adding Tesla’s AI initiatives will be “front and center for investors” on Tesla’s earnings call as analysts will be “listening carefully” about the company’s possible investment into Musk’s xAI.
When Is Tesla’s Earnings Call?
Tesla will livestream its earnings call at 5:30 p.m. EDT on its investor relations website.
Key Background
Tesla’s shares surged in recent months after Musk’s role as a special government employee with the Trump administration ended, though the stock has declined more than 4% over the last month. New car registrations for the company fell through the first five months of the year in Europe, China and California. Musk’s separation from President Donald Trump and subsequent fallout, which featured a back-and-forth on social media, continued in recent weeks as he disagreed with Trump’s spending bill. Analysts have expressed some optimism for Tesla, however, after the company rolled out a limited launch of its anticipated robotaxi driverless vehicle service in Austin, Texas, in June.
What To Watch For
Tesla and Alphabet are the first of the “Magnificent Seven” stocks to issue Q2 reports. They precede reports from Meta and Microsoft on July 30, and from Amazon and Apple on July 31. Nvidia will be the last to release its quarterly report on Aug. 27. Earnings from the world’s largest stocks are expected to be in line with better-than-expected reports by companies listed under the S&P 500 in recent weeks. “Magnificent Seven” firms are expected to post earnings growth of 14% in the second quarter, compared to 3.5% by the remaining 493 companies under the index, according to FactSet.