Tesla Q2 Earnings Preview: Analyst Estimates, Key Items To Watch, Can 'Major Turning Point' In Bull Case Continue?
All eyes could be on Tesla Inc’s (NASDAQ:TSLA) non-vehicle segments and political catalysts when the company reports second-quarter financial results after market close Tuesday.
Here are the earnings estimates, what analysts are saying and key items to watch.
Earnings Estimates: Analysts expect Tesla to report second-quarter revenue of $24.93 billion, according to data from Benzinga Pro.
Tesla reported revenue of $24.73 billion in last year's second quarter. The company has missed analysts' revenue estimates in three straight quarters.
Analysts expect the company to report second-quarter earnings per share of 62 cents, compared to 91 cents per share in last year's second quarter. The company has missed analysts' earnings per share estimate in three straight quarters.
What Analysts Are Saying: Analysts have been mixed on Tesla in recent months. The electric vehicle company beat analysts' estimates for second quarter deliveries.
Tesla reported second-quarter deliveries of 443,956, which was down 4.8% year-over-year and up 14.8% quarter-over-quarter.
A five percent decline in deliveries "never looked so good," Guggenheim analyst Ronald Jewsikow said after the Tesla figure was reported.
The analyst, who had a sell rating, raised the price target from $126 to $134 "with demand headwinds persisting."
Jewsikow was one of several analysts who praised the energy segment for Tesla, with the company now reporting energy storage alongside deliveries and production figures ahead of earnings.
The analyst said Tesla stock is likely moving higher more from the energy storage figure than the delivery figure.
Investors could begin to pay more attention to Tesla Energy, Morgan Stanley analyst Adam Jonas said in a recent note.
The analyst, who had an Overweight rating and $310 price target, said Tesla Energy could be worth $36 per share, or around $130 billion. The analyst sees Gen AI acceleration helping lead to an increase in energy demand, electricity generation, and data center investment.
Wedbush analyst Dan Ives has an Outperform rating and recently raised the price target from $275 to $300.
"After a very choppy start to 2024 for Musk & Co. we believe the Tesla demand story has made a significant turn for the positive with stronger than expected 2Q deliveries this morning [July 2] marking a ‘major turning point' in the Tesla bull case story," Ives said.
Key Items to Watch: Analysts have already dissected the Q2 delivery and production figures, which could lead to less focus on the electric vehicle storyline.
One area of focus could be the Cybertruck, which isn't currently individually broken out in quarterly figures. The company could update on how many it has sold and how many are reserved. Tesla is also nearing delivery of the electric pickup truck in Canada, adding another market to sales.
Outside of vehicles, energy and artificial intelligence could be key focuses as many analysts praised the large energy storage figure reported ahead of the earnings.
Tesla is delaying its robotaxi event, originally set for Aug. 8, until October. The company could share more on what went into the decision and what is expected at the event.
Musk's recent endorsement of Donald Trump for president in the 2024 election and reports of donations could also be a key focus of questions, with many experts noting that Trump could be bad for the electric vehicle sector.
The Tesla CEO recently said that he supports subsidies going away, as it would benefit the company.
TSLA Price Action: Tesla shares are up 5% to $251.73 on Monday, versus a 52-week trading range of $138.80 to $299.29. Tesla shares are up 1.2% year-to-date in 2024 after gaining 33.9% over the last month, as seen on the Benzinga Pro chart below.
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Image created using artificial intelligence via Midjourney.