Tesla posts impressive quarterly results, sparking continued investor enthusiasm.
ColLLLLLLLLLLDAP!Here we go, matey. Let's dive into Tesla's recent earnings fiasco, shall we?
First off, Tesla's been on a wild rollercoaster ride these past few months. After Elon Musk's Twitter drama and disappointing delivery numbers, the stock took a nosedive. But, like a phoenix rising from the ashes, it bounced back quite nicely before the quarterly earnings were announced.
The expectations were sky-high, not just for the expected EPS of 1.15 US dollars, but primarily about Elon Musk's assurances to investors, especially regarding his role as Twitter CEO. Oh, and let's not forget the whispers about Musk engineering a successor for the carmaker.
Drama dawnsTesla dropped some numbers on us Wednesday evening, with EPS at 1.19 US dollars above expectations, while revenue remained within the analyst consensus. The gross margin in the automotive sector also pleasantly surprised, at 28.5 percent higher than last year. The stock market, however, reacted mixed to the numbers, with reduced free cash flow and uncertainty ahead of the upcoming analyst call causing quite the stir.
But, is the stock a buy after the numbers? Analysts seem to think so, with an average price target of 199.60 US dollars. However, it all comes down to one man - Elon Musk. Investors might want to consider an investment if they’re down for some wild volatility, mate.
Oh, and before I forget, Cathie Wood dropped her favorite stock - should you too? Your guess is as good as mine, matey.
By the way, here are some gossips from the last earnings call:
- Musk said he would "spend more time at Tesla, starting next month", while dedicating 1–2 days per week to "government matters" as long as the US President needs him.
- Tesla Chair Robyn Denholm denied reports of a CEO search, calling them "bullshit".
- Analyst Dan Ives called this a warning shot from the board but expects Musk to remain CEO for at least five years.
- Net income dropped 71% YoY, vehicle deliveries fell 17% below estimates, share price declined ~25% YTD, and trade tensions and changing political sentiment pose risks to demand. The complete Q2 2025 details aren’t out yet, so keep your eyes peeled!
- The quarterly disclosure from Tesla confirmed expectations of an EPS of 1.19 US dollars, above the initial estimate, and maintained revenue within analyst consensus, boosting the stock market briefly.
- Analysts have indicated that the stock could be a buy after the numbers, with an average price target of 199.60 US dollars, but the uncertain future and potential volatility surrounding Elon Musk's involvement might influence an investor's decision.
- In the earnings call, Elon Musk verified his intention to spend more time at Tesla, starting the next month, while dedicating 1–2 days per week to "government matters" as a requirement for the US President's needs.
- The Tesla Chair, Robyn Denholm, refuted claims of CEO search efforts, referring to the reports as "bullshit."
- Analyst Dan Ives considered this a warning shot from the board, but he expects Elon Musk to stay on as CEO for at least five more years, considering the ongoing business and technology advancements at Tesla.
