Latest news with #Q2earnings
Yahoo
9 hours ago
- Automotive
- Yahoo
The 5 biggest takeaways from Tesla's Q2 earnings call
Tesla's Q2 revenue fell sharply as CEO Elon Musk warned of a "rough" next few quarters. Tesla plans to expand robotaxi services and launch a cheaper Model Y lookalike by the end of 2025. The company's stock fell about 4.4% after trading hours. Things could get worse before they get better, at least according to Tesla's CEO, Elon Musk. Tesla's second-quarter earnings showed its steepest year-over-year revenue decline in at least a decade, below already grim Wall Street estimates. After the earnings call, Tesla shares were down more than 4% in after-hours trading. Here are the five biggest takeaways from Tesla's call and how analysts are taking it: 1. Brace yourself for the next few quarters The CEO told analysts Wednesday that the EV maker is heading into a "weird transition period." The earnings report said the problems come from "shifting tariffs, unclear impacts from changes to fiscal policy, and political sentiment." "Does that mean like we could have a few rough quarters? Yeah, we probably could have a few rough quarters," Musk said on the call. Though he added that the bumpiness isn't guaranteed, he said the company is navigating waning EV incentives and evolving autonomous vehicle regulations. "I think Tesla's economics will be very compelling by the end of next year," Musk said. Thomas Monteiro, a senior analyst at wrote in a note that there are reasons to be optimistic as the company works to gain ground in India and China. "Although still far from what fundamentals would suggest for a trillion-dollar company," wrote Monteiro, "Tesla's latest numbers do spark some optimism, indicating that the worst is likely behind it — at least in terms of the core auto business." 2. A not-so-robo taxi expansion? Tesla executives provided some more details on robotaxi's progress, including a quasi-robotaxi expansion planned for the San Francisco Bay Area. Ashok Elluswamy, Tesla's VP of AI software, said during the call that the company is testing in other US cities and that Tesla plans to "launch" robotaxi in the Bay Area, "with a person in the driver's seat." Elluswamy said having a driver behind the wheel will help expedite the expansion process as the company awaits regulatory approval in California. With a driver in the seat, Tesla's Robotaxi arrival in the region would look similar to Waymo's early days in 2018. Human safety monitors are riding along in the front passenger seat of Tesla's robotaxis in Austin, and the service is only available to a few Tesla influencers and investors. The company provided some other bold but broad robotaxi timelines: Musk said Tesla plans to expand the service in a "couple of weeks or so" as it continues its limited operation in Austin. Cybercab, the purpose-built robotaxi that has no steering wheel or pedals, is slated for volume production in 2026. Tesla owners will be able to add their personal Teslas to the robotaxi fleet by "next year," although Musk said, "We don't want to jump the gun." The CEO said he expects Tesla's autonomous ride-hailing service to be available to "probably half of the population of the US by the end of the year," pending government approval. Musk has missed deadlines for previously announced robotaxi timelines. 3. The cheaper Tesla will be a Model Y lookalike Musk said the highly anticipated, cheaper Tesla will look "like a Model Y." He later added that the company anticipates the vehicle to be available to the public in the fourth quarter. "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," Tesla wrote in the earnings release. Tesla first floated the idea of a more affordable car in 2020 at the company's "Battery Day." Musk described a $25,000 electric car, nicknamed the "Model 2," with a target of launching within three years, but that deadline passed without delivery. 4. Musk is concerned about his shares in the company Musk is afraid he "can easily be ousted by activist shareholders" if his shares in Tesla decrease, alongside his control over the company. "I think my control over Tesla should be enough to ensure that it goes in a good direction," Musk says. "But not so much control that I can't be thrown out if I go crazy." This is not a new concern for Musk. "I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control," he posted on X in January of 2024. "Enough to be influential, but not so much that I can't be overturned." His concern about activism comes as his political involvement is unpopular among some shareholders, who think it's distracting. The latest Electric Vehicle Intelligence Report showed that 51% of direct Tesla shareholders prefer that he spend more time on the company, while just 12% would like to see him spend more time on the government. 5. Tesla declines to talk about xAI Vaibhav Taneja, Tesla's chief financial officer, didn't want to talk about the idea of Tesla investing in Musk's other company, xAI, saying the earnings call is "not the forum" to address the issue. Musk, on the other hand, said that "shareholders are welcome to put forward any shareholder proposals that they'd like." "I recently encouraged that, and then have shareholders vote and will act in accordance with the shareholder wishes," Musk said. Musk had previously opposed the idea of merging xAI with Tesla, but he said he wants to put investing in the AI company to a shareholder vote in November. Kevin Thomas, the CEO of Shareholder Association for Research and Education, previously told BI that Musk is creating "a nightmare" from "a governance point of view." "If this were a merger decision, at least we'd be looking at a single entity, where that company's CEO could justifiably decide where to allocate resources between its divisions," said Thomas. "Is it too much to ask Tesla's CEO to work for Tesla first and foremost?" Read the original article on Business Insider Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10 hours ago
- Automotive
- Yahoo
The 5 biggest takeaways from Tesla's Q2 earnings call
Tesla's Q2 revenue fell sharply as CEO Elon Musk warned of a "rough" next few quarters. Tesla plans to expand robotaxi services and launch a cheaper Model Y lookalike by the end of 2025. The company's stock fell about 4.4% after trading hours. Things could get worse before they get better, at least according to Tesla's CEO, Elon Musk. Tesla's second-quarter earnings showed its steepest year-over-year revenue decline in at least a decade, below already grim Wall Street estimates. After the earnings call, Tesla shares were down more than 4% in after-hours trading. Here are the five biggest takeaways from Tesla's call and how analysts are taking it: 1. Brace yourself for the next few quarters The CEO told analysts Wednesday that the EV maker is heading into a "weird transition period." The earnings report said the problems come from "shifting tariffs, unclear impacts from changes to fiscal policy, and political sentiment." "Does that mean like we could have a few rough quarters? Yeah, we probably could have a few rough quarters," Musk said on the call. Though he added that the bumpiness isn't guaranteed, he said the company is navigating waning EV incentives and evolving autonomous vehicle regulations. "I think Tesla's economics will be very compelling by the end of next year," Musk said. Thomas Monteiro, a senior analyst at wrote in a note that there are reasons to be optimistic as the company works to gain ground in India and China. "Although still far from what fundamentals would suggest for a trillion-dollar company," wrote Monteiro, "Tesla's latest numbers do spark some optimism, indicating that the worst is likely behind it — at least in terms of the core auto business." 2. A not-so-robo taxi expansion? Tesla executives provided some more details on robotaxi's progress, including a quasi-robotaxi expansion planned for the San Francisco Bay Area. Ashok Elluswamy, Tesla's VP of AI software, said during the call that the company is testing in other US cities and that Tesla plans to "launch" robotaxi in the Bay Area, "with a person in the driver's seat." Elluswamy said having a driver behind the wheel will help expedite the expansion process as the company awaits regulatory approval in California. With a driver in the seat, Tesla's Robotaxi arrival in the region would look similar to Waymo's early days in 2018. Human safety monitors are riding along in the front passenger seat of Tesla's robotaxis in Austin, and the service is only available to a few Tesla influencers and investors. The company provided some other bold but broad robotaxi timelines: Musk said Tesla plans to expand the service in a "couple of weeks or so" as it continues its limited operation in Austin. Cybercab, the purpose-built robotaxi that has no steering wheel or pedals, is slated for volume production in 2026. Tesla owners will be able to add their personal Teslas to the robotaxi fleet by "next year," although Musk said, "We don't want to jump the gun." The CEO said he expects Tesla's autonomous ride-hailing service to be available to "probably half of the population of the US by the end of the year," pending government approval. Musk has missed deadlines for previously announced robotaxi timelines. 3. The cheaper Tesla will be a Model Y lookalike Musk said the highly anticipated, cheaper Tesla will look "like a Model Y." He later added that the company anticipates the vehicle to be available to the public in the fourth quarter. "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," Tesla wrote in the earnings release. Tesla first floated the idea of a more affordable car in 2020 at the company's "Battery Day." Musk described a $25,000 electric car, nicknamed the "Model 2," with a target of launching within three years, but that deadline passed without delivery. 4. Musk is concerned about his shares in the company Musk is afraid he "can easily be ousted by activist shareholders" if his shares in Tesla decrease, alongside his control over the company. "I think my control over Tesla should be enough to ensure that it goes in a good direction," Musk says. "But not so much control that I can't be thrown out if I go crazy." This is not a new concern for Musk. "I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control," he posted on X in January of 2024. "Enough to be influential, but not so much that I can't be overturned." His concern about activism comes as his political involvement is unpopular among some shareholders, who think it's distracting. The latest Electric Vehicle Intelligence Report showed that 51% of direct Tesla shareholders prefer that he spend more time on the company, while just 12% would like to see him spend more time on the government. 5. Tesla declines to talk about xAI Vaibhav Taneja, Tesla's chief financial officer, didn't want to talk about the idea of Tesla investing in Musk's other company, xAI, saying the earnings call is "not the forum" to address the issue. Musk, on the other hand, said that "shareholders are welcome to put forward any shareholder proposals that they'd like." "I recently encouraged that, and then have shareholders vote and will act in accordance with the shareholder wishes," Musk said. Musk had previously opposed the idea of merging xAI with Tesla, but he said he wants to put investing in the AI company to a shareholder vote in November. Kevin Thomas, the CEO of Shareholder Association for Research and Education, previously told BI that Musk is creating "a nightmare" from "a governance point of view." "If this were a merger decision, at least we'd be looking at a single entity, where that company's CEO could justifiably decide where to allocate resources between its divisions," said Thomas. "Is it too much to ask Tesla's CEO to work for Tesla first and foremost?" Read the original article on Business Insider Sign in to access your portfolio
Globe and Mail
17 hours ago
- Business
- Globe and Mail
Tesla Releases Second Quarter 2025 Financial Results
Tesla has released its financial results for the second quarter of 2025 by posting an update on its Investor Relations website. Please visit to view the update. As previously announced, Tesla management will host a live question and answer (Q&A) webcast at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss the results and outlook. What: Tesla Second Quarter 2025 Financial Results Q&A Webcast When: Wednesday, July 23, 2025 Time: 4:30 p.m. Central Time / 5:30 p.m. Eastern Time Q2 2025 Update: Webcast: (live and replay) The webcast will be archived on the company's website following the call.
Yahoo
3 days ago
- Business
- Yahoo
Morgan Stanley Raises Yum Brands (YUM) Price Target, Maintains Equal Weight Rating
Yum! Brands, Inc. (NASDAQ:YUM) is one of the most profitable consumer stocks to buy now. Yum! Brands (NYSE: YUM) got a lift this week after Morgan Stanley raised its price target on the stock to $153 from $151, reflecting cautious optimism around the company's near-term outlook. The firm maintained its Equal Weight rating but pointed to improving industry conditions that could lead to a stronger Q2 for restaurant operators and food distributors. A chef in a kitchen preparing a fast food meal of chicken, pizza and burgers. With Yum! Brands currently trading at around $149, the new price target suggests a modest upside of approximately 2.7%. While not a dramatic revision, the move signals confidence in the company's ability to navigate a mixed macro environment. In a note to investors, the firm highlighted stabilizing input costs and healthy spending patterns among middle- and upper-income consumers, which continue to support dining out behavior despite persistent policy uncertainty. Morgan Stanley also noted that the broader restaurant space appears better positioned this quarter, as inflation pressures ease and discretionary spending remains intact in key consumer groups. For Yum!, that could translate into more consistent traffic and potentially stronger margins, particularly as it continues to focus on digital engagement, value menus, and international expansion. Investors are now eyeing Yum!'s upcoming earnings report for confirmation that these trends are translating into tangible performance improvements, especially in high-margin segments like Taco Bell. While we acknowledge the potential of YUM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Best Industrial Automation Stocks to Buy for the Next Decade Disclosure: None.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Bank of America Reports Strong Q2 2025 Earnings
Bank of America ( (BAC)) has released its Q2 earnings. Here is a breakdown of the information Bank of America presented to its investors. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Bank of America, a leading global financial institution, provides a wide range of banking, investing, asset management, and financial services to individual consumers, small and middle-market businesses, and large corporations. The company is known for its extensive digital banking services and strong presence in wealth management and investment banking. In its second-quarter earnings report for 2025, Bank of America announced a net income of $7.1 billion, or $0.89 per diluted share, marking an increase from the previous year. The bank's revenue rose by 4% year-over-year to $26.5 billion, driven by higher net interest income and increased sales and trading revenue. Key financial highlights include a 7% growth in net interest income to $14.7 billion, reflecting continued deposit and loan growth. Consumer banking saw a 6% revenue increase to $10.8 billion, while Global Wealth and Investment Management reported a 7% rise in revenue to $5.9 billion. Global Markets experienced a 14% increase in sales and trading revenue, contributing to a net income of $1.5 billion. Despite a decrease in investment banking fees, the bank maintained strong performance across its segments, with average deposits exceeding $2 trillion and average loans and leases growing by 7%. The bank also returned $7.3 billion to shareholders through dividends and share repurchases. Looking ahead, Bank of America remains focused on supporting the broader economy with a robust balance sheet and continued investment in technology and people. The bank's management is optimistic about sustaining growth and delivering value to shareholders, despite potential economic uncertainties.
