Tesla's Q2 Earnings Preview: Focus on Full Self-Driving and Profit Margins

Monday, 22 July 2024, 09:30

Tesla (TSLA) is set to announce its second quarter earnings on July 23rd, drawing attention to its Full Self-Driving (FSD) technology and plans for a robotaxi. CEO Elon Musk hinted at delays in the robotaxi unveiling, focusing instead on consumer demand for FSD following a price cut. Analyst George Gianarikas from Canaccord Genuity emphasizes the importance of consumer interest in FSD, which will significantly impact Tesla's earnings trajectory in the coming years. Expert insights reveal that the outcomes of this call may set the tone for Tesla's future strategies.
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Tesla's Q2 Earnings Preview: Focus on Full Self-Driving and Profit Margins

Tesla's Upcoming Earnings Release

Tesla (TSLA) is scheduled to release its second quarter earnings after the market close on Tuesday, July 23rd. Analysts are particularly interested in the company’s Full-Self Driving (FSD) technology and its broader implications for future products.

Focus on FSD and Robotaxi Plans

  • CEO Elon Musk hinting at delays for the robotaxi unveiling originally planned for August.
  • Musk mentioned a necessary design change, suggesting the timeline for the robotaxi has shifted.
  • Emphasis on FSD consumer interest post-price reduction and its effect on future earnings.

Analyst Insights

According to George Gianarikas, managing director at Canaccord Genuity, the company's margin outlook and energy storage developments will be significant. However, the main focus will be the FSD take rate. He notes:

  1. Understanding consumer appetite for FSD is crucial to determining future earnings.
  2. There is anticipation that data on FSD usage will need to be solicited during the earnings call, as the company does not typically disclose this information.

Conclusion

The outcomes of Tesla's earnings release will be critical in shaping expectations regarding its innovative technologies and overall market strategy in the years to come.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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