Tesla Earnings is tomorrow – Here’s what analysts think you should be looking for

Tesla is set to report its earnings for the second quarter tomorrow afternoon, and analysts are preparing for a variety of different things as the call is expected to have a different feel than previous ones.

Tesla Head of Investor Relations Martin Viecha announced last quarter that he would no longer be on any Earnings Calls moving forward as he was stepping down from his position. CEO Elon Musk will be on the call, and will navigate questions regarding what was a strong second quarter from analysts and investors alike.

Taking focus during this quarter will be several relevant topics during the first half of 2024 for Tesla. The company’s Robotaxi event, originally scheduled for August, has been pushed back to what Bloomberg reported as October.

Tesla Robotaxi unveiling event pushed back from August: report

Additionally, Tesla’s quarter was filled with various headlines — a 10 to 20 percent reduction in global workforce, a delivery beat, and a relative focus on artificial intelligence as Full Self-Driving and Optimus continue to be the center of discussions surrounding the company’s future.

However, analysts believe something else might be a topic worth mentioning: margins.

Tesla’s Margins

Wall Street, according to Reuters, expects Tesla’s automotive gross margin to slip to 16.27 percent. This would be the lowest since Q1 2019. It was over 18 percent in Q2 2023 and 16.36 percent in Q1 2024.

This is likely due to Tesla’s incredibly attractive financing discounts, which it rolled out twice during Q2. Analysts believe margins are going to increase back to normal levels in 2025 as Cybertruck continues its production ramp, which will ease the pressure associated with the costs of building a new vehicle.

Paul Marino of GraniteShares said:

“AI and robotaxi is such a huge opportunity over the next two, three, five years. So if you’re a long-term believer, you’re going to take the margins like your medicine.”

Robotaxi and Full Self-Driving

A main focus of the call for Tesla investors will be the rollout of Robotaxi and an update on the progress of Full Self-Driving (FSD). Tesla did delay its Robotaxi unveiling event, which was set for August 8, and it is expected to be in October.

The two-month delay is nothing too unsettling for long-term investors who have a belief in the company and Musk.

Tesla stock set for ten-fold surge on Robotaxi: ARK Invest

Wedbush talked about the lack of real impact the delay has on the long-term:

“While the knee-jerk reaction will clearly be negative on a delay of August 8th based on this report that just hit, we believe the timing of robotaxis, partnerships, and the ultimate autonomous and AI-driven technology does not change at all for our bullish Tesla thesis.”

Dan Ives also said in his note that the delay could actually be looked at as a positive:

“To some extent, we believe this 2-month delay could just make the actual Robotaxi event and prototypes even better, and more eye-popping for Tesla as Musk and the team know this unlocks the key to the long-term future of the Tesla story, and investors want MORE details…not less at this historic event.”

Delivery Beat

Tesla reported delivery figures for the quarter at the beginning of the month and they were quite encouraging, all things considered. Beating Wall Street consensus figures by roughly 6,000 vehicles, Tesla stock saw a drastic increase in price since the report:

Tesla reports Q2 delivery and production figures, beating estimates

Up over 35 percent in the past month on the market, Tesla canceled out any losses it felt through the first six months.

Along with the strong delivery figures, Tesla Energy reported its biggest quarter to date, with 9.4 GWh of deployments reported in Q2.

Tesla Energy could be one of the bigger factors in future earnings reports. Baird’s Ben Kallo said Q2 numbers “should be good largely (but not only) due to strength in energy:”

“We think a more stable pricing environment during the quarter, higher revenue from full self-driving, and the large beat in its energy segment all support a solid quarter.”

Tesla will report its Q2 Earnings tomorrow after the market closes. It will be followed by an Earnings Call with Musk and other executives.

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