Tesla earnings report live updates: EV maker reports steepest revenue drop in a decade, stock swings after hours
Adjusted earnings per share, a key measure of profitability, were 40 cents compared to Wall Street's estimates of 42 cents.
Investors had an inkling of the challenges the latest earnings would reveal. Tesla already reported deliveries for the second quarter on July 2, missing analysts' expectations. The company delivered 384,000 cars compared to estimates of 389,400 vehicles delivered.
The stock has been on a roller coaster ride in 2025. Sagging sales figures, Elon Musk's political activities, and public feuding with President Donald Trump have dented investor confidence, even as many on Wall Street are bullish about the company's longer-term prospects.
Heading into the 5:30 p.m. ET analyst call, investors will be listening closely for key business updates on initiatives including robotaxis, full self-driving, and AI.
Tesla stock is down about 18% through Wednesday's close.
Tesla's latest launch was actually a diner?Two Business Insider reporters visited the new Tesla Diner in Los Angeles within 24 hours of its grand opening this week. The retro-futuristic atmosphere is complete with rounded architecture, eye-catching neon lighting, 45-foot drive-in screens playing Sci-Fi classics like "Star Trek" and "War of the Worlds," and servers darting around on roller skates.Celebrity chef Eric Greenspan controls the 24-hour diner's menu offerings, which are reimagined takes on classics including burgers, hot dogs, breakfast tacos, and chicken and waffles. Opening day was bustling and busy, with the kitchen at times overwhelmed by wave upon wave of guests — typical for a grand opening — but minor hiccups in service were easily overcome and both reporters left feeling the diner was worth a second visit.While it remains to be seen how long the novelty of the Tesla Diner will linger at the West Hollywood location, Musk has said this is just the first of many souped-up Supercharger stations to come, announcing on Monday that he's planning to build a second drive-in near SpaceX's Starbase spaceport in Texas.— Katherine Tangalakis-Lippert
As Tesla continues its pilot launch of the robotaxi service in Austin, investors and analysts will be paying attention to a few key data points.Gene Munster, managing partner at Deepwater Asset Management and Tesla investor, said in an analysis published Tuesday that the rate of the Robotaxi's expansion will be more important than the "absolute fleet size of geofence size."Investors appear to agree, as one of the top questions on Tesla's online Q&A forum asks about the rate the company expects to increase operations.Jose Asumendi, JP Morgan's head of the European Automotive Research team, told Business Insider that Robotaxi's long-term progression will be determined by the number of cities the service has been deployed, number of accidents and disengagements per kilometer, and the technology's acceptance by the public.-Lloyd Lee
Tesla stock could be heading toward an inflection point, if Musk continues to lead Tesla full-time and stay on top of its most important projects, analysts at Wedbush Securities said.In a note on Tuesday, the firm said that the outlook for Tesla looked "dramatically different" now compared to three months ago, when Musk was still working closely with the Trump administration.In a previous note, Wedbush analysts expressed concerns over Musk's political intentions, calling his plan to create a new political party a "Soap Opera" that needed to end. The firm also outlined a list of actions Tesla's board needed to take to move the company forward, which included drafting a new pay package for Musk and setting guidelines for Musk's political plans."We are at a 'positive crossroads' in the Tesla story," the analysts said.Wedbush reiterated its "Outperform" rating and the stock and $500 price target, implying about 49% upside from current levels.
Tesla is in a difficult spot ahead of earnings, Federico Merendi, an analyst at Bank of America, wrote on Monday."Tesla 2Q earnings are likely to be challenged due to tariffs and disappointing deliveries," Merendi wrote, adding that Tesla sourced its batteries from China and that its exposure to tariffs was "not insignificant."The bank reiterated its "Neutral" rating on the stock and raised its price target to $341 a share, up from the prior estimate of $305. Its new price target implies about 3% upside from the current levels.
Musk's promise to create a new political party could be a short-term headwind for Tesla stock, analysts at Morgan Stanley wrote in a note, calling the situation a "party crasher."The bank pointed to the immediate drop in Tesla stock after Musk officially announced his plan to form the "America Party" in a post on X earlier this month, which sent shares tumbling around 7%."While the situation remains fluid, we believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk's political priorities which may add further near-term pressure to TSLA shares," analysts wrote.Still, Tesla stock remains a "top pick" for the bank. Analysts reiterated their $410 price target on the stock, pointing to their growth forecasts for Tesla's auto business.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 minutes ago
- Yahoo
S&P 500 Falls 1.5%, Nasdaq Tumbles 2% Dow Drops 500 Points on weak jobs and Trump tariffs
Aug 1 - U.S. stocks fell sharply Friday morning as a disappointing July jobs report and President Donald Trump's updated tariffs rattled investors. The Dow Jones Industrial Average dropped 583 points, or 1.3%, while the S&P 500 fell 1.5% and the Nasdaq Composite slid nearly 2%. Warning! GuruFocus has detected 2 Warning Signs with FLTLF. The Labor Department reported just 73,000 new nonfarm payrolls in July, far below economists' forecasts for 100,000. Prior months were revised significantly lower, highlighting ongoing labor market weakness. Traders now see a 66% chance of a September Federal Reserve rate cut, up from earlier in the week. Tariff news added pressure. The White House announced levies of 10% to 41% on select imports, including a 35% rate on goods from Canada, up from 25%. Items routed through third countries to avoid duties will face a 40% charge. Tech and bank stocks were the worst in dragging down the market. JPMorgan Chase (NYSE:JPM) declined by 4%, and Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) dropped by more than 3%. Amazon (NASDAQ:AMZN) was down over 7% on weaker than hoped-for directions, and Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) were falling, too. Apple (NASDAQ:AAPL) was an exception to the downward move when it gained 2 percent after it reported good earnings. This article first appeared on GuruFocus.
Yahoo
9 minutes ago
- Yahoo
Trump's New Tariff Tsunami: Is a Global Recession the Next Chapter?
Four months after Donald Trump rattled markets with a tariff-filled placard at the Rose Garden, the president has followed through with a sweeping new tariff regimeand this time, the investor reaction was more muted, but far from calm. The average US tariff rate is now set to climb to 15.2%, up from just 2.3% before Trump first took office, marking one of the steepest climbs in modern trade history. While markets initially held upS&P 500 futures dipped ~1%, Asia and Europe fell modestlysome of the new figures turned heads, including a 39% tariff on Swiss imports and 35% on certain Canadian goods. For investors, the message is clear: the tariff cycle isn't over, and uncertainty is back on the table. Warning! GuruFocus has detected 2 Warning Signs with FLTLF. Economists are already modeling the fallout. According to Bloomberg Economics, the 12.8 percentage point jump in average tariffs could shave 1.8% off US GDP over the next two to three years, and push core inflation up by around 1.1%. That's not just a numberit's a macro headwind with real consequences for rate policy and corporate earnings. Former IMF Chief Economist Raghuram Rajan called it a serious demand shock that could force global central banks to start cutting. Meanwhile, Fed Chair Jerome Powell pushed back on rate cut calls, but admitted that persistent price pressures from tariffs could be a risk to manage. For multinationals and exporters, the road ahead may get bumpier as consumption patterns shift and investment plans stall. And there's more coming. Trump's team is expected to roll out additional sector-specific tariffstargeting semiconductors, critical minerals, and pharmaceuticalsin the weeks ahead. Companies with global supply chains, including Tesla (NASDAQ:TSLA), could face heightened scrutiny under a new 40% penalty aimed at deterring transshipment, though exact enforcement rules remain vague. Nations like Canada and Mexico may breathe easier thanks to USMCA carve-outs, but othersespecially those hit with 15% or higher ratesmay find themselves repricing or rerouting exports entirely. As one former US trade official put it: Don't assume this is the end of the story Trump sees this as an ongoing reality show. For investors, the playbook is shifting. Again. This article first appeared on GuruFocus.
USA Today
10 minutes ago
- USA Today
Shock jobs report stirs recession fears: 5 takeaways
The disappointing July jobs report threw a bucket of cold water on an economic outlook that appeared to be holding up surprisingly well despite President Donald Trump's high import tariffs, immigration crackdown and widespread federal layoffs. Not only did employers add a disappointing 73,000 jobs – well below the 105,000 expected – but payroll gains for May and June were revised downward by a whopping 258,000. That left May's additions at 19,000 and June's at 14,000, the weakest performance since the nation was climbing out of the COVID-19 recession in December 2020. In early afternoon trading, the Dow Jones Industrial Average was down about 607 points and the benchmark S&P 500 index was off 1.5% Over the past three months, the economy has averaged just 35,000 employment gains. Here are a few takeaways: This was no blip The poor showing likely wasn't an outlier that will be followed by a resumption of healthy job gains in the months ahead, economists said. Consumers have reined in their spending somewhat, amid worries about Trump's tariffs pushing up prices, and are pulling back on travel and recreational activities. As more of the import charges hit store shelves, Americans will likely restrain their outlays further, Pantheon Macroeconomics wrote in a note to clients. That should translate into weaker job gains, especially in sectors such as manufacturing, retail, trucking and warehousing, the research firm said. And on July 31, Trump escalated his global trade fight with a sweeping new round of import levies. Meanwhile, executives' confidence in the business outlook has been shaken in recent months by the tariffs – which are squeezing profit margins – and that's expected to spell a more pronounced decline in business investment, Pantheon said. 'Sadly, employment appears set for a further summer slowdown as firms, facing renewed cost volatility from escalating trade tensions, remain focused on managing labor costs through reduced hiring, performance-based layoffs, restrained wage growth, and lower entry-level wages,' Gregory Daco, chief economist of EY-Parthenon, wrote to clients. Also, after the Supreme Court recently lifted a stay on mass federal layoffs, 'the decline in federal employment likely will gather more momentum over the coming months,' Pantheon said. The Labor Department has tracked 84,000 federal job losses this year, but the number of buyouts and job cuts announced was much larger. Hiring across the economy hit a 12-month low in June, Labor Department figures show. Will there be a recession in 2025? The dreaded word has slipped back into the conversation after fading the past couple of months as Trump delayed many tariffs and reached deals with several countries. 'To me, today's jobs report is what entering a recession looks like,' Josh Bivens, chief economist of the left-leaning Economic Policy Institute, said in a statement. 'Could we pull up? Sure. But if we look back and end up dating an official recession that starts 3-6 months from now, this is what it would look like today – rapid softening/deterioration in the labor market.' A recession now appears 'very, very likely' unless Trump lowers the tariffs by Labor Day, said Mark Zandi, chief economist of Moody's Analytics. Could a skidding economy and stock market lead Trump to reverse course? A darkening economic outlook and tumbling stock market could well prompt Trump to try to soften the import fees, Zandi said. 'He's going to try to pull it back,' he said. But if he doesn't act before Labor Day, 'It will be too late,' Zandi said, adding the duties will start to ripple too dramatically into retail prices and consumer and business sentiment for the effects to be undone. A September fed rate cut likely At a July 30 news conference following the Fed's decision to hold rates steady for a fifth straight meeting, Fed Chair Jerome Powell described the labor market as solid and balanced. He also said officials would focus primarily on the unemployment rate as they decide whether to lower rates in September. The jobless rate edged up to 4.2% in July. It's still historically low even as Trump's immigration constraints, particularly deportations, shrank the labor force – the pool of people working or looking for jobs. Still, employer demand for employees has waned. But Morgan Stanley suggested the feeble job gains of the past three months would spur the Fed to act in September despite stable unemployment. 'The slower payroll pace keeps downside risks elevated and a September cut on the table,' Morgan Stanley said in a research note. Fed fund futures markets are now putting the chances of a September rate decrease at 85%, up from 45% after Powell's July 30 remarks. AI is starting to crimp job gains Professional and business services shed 14,000 jobs in July and payroll gains in the sprawling white-collar sector have been stagnant for more than two years. July's showing included job losses in computer and technical roles. Staffing executives say companies are replacing many entry-level information technology workers with artificial intelligence. 'It is happening,' Goldman Sachs chief economist Jan Hatzius said on CNBC after the release of the July jobs report. 'This is not the main thing driving the labor market... But we're seeing early signs.'
