Tesla (TSLA) stock initially saw a 1% spike following the release of its second quarter results, but the stock experienced fluctuations as investors analyzed the earnings miss. Here are the top takeaways that investors were closely watching in Tesla’s latest results:
The core auto business:
In the second quarter, Tesla reported revenue of $22.50 billion, slightly below the Bloomberg consensus of $22.64 billion. This represented a 9% decrease compared to the $25.05 billion reported in the same period last year. The company posted adjusted earnings per share of $0.40, falling short of the $0.42 expected. Operating income came in at $923 million, missing the $1.23 billion estimate.
The cheap EV:
Tesla announced that its “more affordable” model is still on track for production in 2025. The company stated, “We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025.” Despite this update, there have been no indications or renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Currently, Tesla’s cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives.
Robotaxi rollout:
Tesla confirmed that its purpose-built robotaxi is scheduled for volume production release starting in 2026. The company has been expanding its robotaxi testing in Austin, Texas, with a larger operating area and potentially more vehicles being deployed.
Overall, Tesla’s second quarter results were met with mixed reactions from investors. While the stock initially saw a positive response, the earnings miss and updates on future products left some questioning the company’s trajectory. As Tesla continues to innovate and expand its offerings, the market will be closely monitoring its progress in the coming quarters.
For more information on Tesla’s latest developments, be sure to stay updated on the latest news and updates.
