Leading analysts react to Tesla Inc.’s (NASDAQ:TSLA) second-quarter earnings call, flagging a range of concerns regarding the company and its current direction.
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What Happened: On Wednesday, soon after the call, Gene Munster, a managing partner at Deepwater Asset Management, posted on X, noting that the stock was “down almost 4.3%, compared to flat at the start of the call.” Munster adds that “There was no single trigger for the sell-off. It was a steady decline throughout the call.”
Munster highlighted several red flags in the call, starting with the absence of “clear metrics about what to expect this quarter from Austin,” referring to the company’s robotaxis that were rolled out in the city.
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He further expressed concerns that Tesla would need to “fund autonomy from the balance sheet until it reaches scale,” which he said “raise[s] questions about what profits will look like over the next year.”
Investor and podcaster Amit Kukreja posted on X, saying that the call confirmed that “the affordable model is a smaller model Y,” fueling concerns of cannibalization.
He also highlights CEO Elon Musk’s warnings of hiccups for the next four quarters, “before material unit economic changes from robotaxi.”
“If you're a bull, there is nothing that new, if you are a bear, you probably continue to be bearish," he says, calling Tesla “rangebound until meaningful earnings growth.”
The Editor-in-Chief of Electrek, Fred Lambert, however, had a rather blunt critique of the call. “What a shit show of a $TSLA call,” he says, adding that he is “pretty sure” that there was “a lie per minute.”
He also warned that Musk gave “a ton of ammunition” to the lawyers and shareholders who are currently suing him for breach of fiduciary duty “in the xAI/Tesla case,” he says.
Lambert also says that the company’s much-touted autonomous taxi business “will not be a giant profit center,” and that scaling in this space would be expensive, with fierce competition.
Why It Matters: Tesla released its second-quarter results on Wednesday, reporting $22.5 billion in revenue, down 12% year-over-year, and missing consensus estimates at $22.8 billion. The company reported a profit of $0.40 per share, again missing Street estimates at $0.42.
Price Action: The company’s shares were up 0.14% on Wednesday, trading at $332.56, but are down 4.44% after hours, following the earnings call.
According to Benzinga’s Edge Stock Rankings, Tesla shares score well on Growth, but lag on other fronts. They have a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock.
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