Elon Musk Talks Robotaxi Delay, Nvidia Clusters, And Mexican Gigafactory Postponement Amid Tariff Worries If Trump Wins — Tesla Falls Almost 8% After-Hours
Elon Musk, the CEO of Tesla Inc. (NASDAQ:TSLA), discussed various aspects of the company’s operations during the second-quarter earnings call, including a robotaxi delay and the company’s energy business.
What Happened: The company’s EPS, operating margins, and free cash flow fell short of consensus expectations, leading to a post-market session decline in Tesla’s stock.
Musk acknowledged the challenges posed by the current discounting in the electric vehicle sector but believes it will be a short-term issue. He assured that the company is on track to deliver an affordable model in the first half of next year. Musk also emphasized the potential of autonomous driving as a significant demand driver.
The much-anticipated robotaxi event has been rescheduled to Oct. 10, with Musk hinting at additional features to be unveiled. He also announced the production of the Optimus humanoid robot next year, with plans for thousands to be deployed by 2025.
Musk also addressed the energy business, stating that Tesla is ramping up as quickly as possible. He stressed the importance of autonomy and the potential of the Optimus robot to perform crucial tasks for the company by 2025.
During the Q&A session, Musk admired NVIDIA Corp.‘s (NASDAQ:NVDA) GPU clusters but reiterated Tesla’s commitment to developing the Dojo supercomputer. He also revealed that the company is postponing plans for a Gigafactory in Mexico due to the U.S. election and potential tariffs if Donald Trump is re-elected.
Why It Matters: Tesla’s second-quarter financial results, showed a 2% year-over-year growth in revenue, beating the Street’s consensus estimate of $24.73 billion. Despite the revenue beat, the company’s EPS missed expectations, contributing to the decline in stock value during the post-market session.
The company reported earnings per share of 52 cents in the second quarter, down 43% year-over-year. The earnings per share missed a Street consensus estimate of 62 cents per share.
Tesla reported second-quarter deliveries of 443,956 vehicles and production of 410,831 vehicles, down 5% and 14% year-over-year, respectively.
Price Action: Tesla’s stock closed at $246.38 on Tuesday, down 2.04% for the day. In after-hours trading, the stock fell further 7.77%. Year to date, the stock has decreased by 0.82%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote