Tesla Earnings, AI Push Eyed Amid Delivery Slowdown and Stock Volatility

# Tesla Q2 Earnings Preview: Stock Rebounds Despite Delivery Challenges

Tesla's stock ($TSLA) has shown resilience ahead of its critical Q2 earnings report, trading at $332 per share with an 11.5% rebound over the past two weeks. Despite delivery numbers falling 13.5% year-over-year to 384,122 vehicles, investors remain cautiously optimistic about the EV leader's future prospects. With a market cap of approximately $1.06 trillion, Tesla faces a pivotal moment as analysts expect Q2 revenue of $22.25 billion and EPS of $0.40, down from $0.52 last year. While competition intensifies in key markets, Wall Street's divided outlook (with price targets ranging from $19 to $500) highlights the importance of Tesla's AI initiatives and autonomous driving technology as potential growth catalysts. This episode explores Tesla's current market position, delivery challenges, and whether its Robotaxi ambitions can offset slowing EV sales in today's competitive landscape.

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Episode Transcript

Speaker 1 (00:00):
Tesla is trading this morning at around three hundred thirty
two United States dollars per share, which is slightly higher
than the previous close and reflects a modest one point
one per cent daily gain. The recent trading volume was
about seventeen million shares, which is considerably lower than the
average daily volume of nearly ninety eight million shares, suggesting
that market activity was subdued ahead of the company's highly

(00:21):
anticipated second quarter earnings announcement expected later today. Tesla's share
price has rebounded by about eleven and one half percent
in the past two weeks, and the stock is up
almost thirty one percent over the last twelve months, though
it remains down about nineteen percent for the year. Tesla
hit a twelvemonth high of four hundred eighty eight United
States dollars and a low of one hundred eighty two

(00:43):
United States dollars during this period. The market capitalization stands
at approximately one trillion sixty billion United States dollars, underscoring
its continued dominance among large technology companies. Recent news has
focused on the company's delivery numbers and shifting expectations. In
the second quarter, Tesla delivered three hundred eighty four thousand,
one hundred twenty two vehicles, down thirteen and one half

(01:06):
percent year over year, marking the second consecutive quarter of
declining deliveries. This result closely matched but slightly missed consensus expectations.
Revenue for the quarter is projected to be about twenty
two to one quarter billion United States dollars, which is
lower compared to the same period last year. Earnings per
share for the second quarter are expected to be around

(01:27):
forty cents, a decline from fifty two cents last year.
Amylists are divided on Tesla's outlook. The most recent price
targets range widely from a low of nineteen United States
dollars to a high of five hundred United States dollars.
Piper Sandler reaffirmed in overweight rating and set a four
hundred United States dollar target, while Bank of America recently

(01:48):
raised its target to three hundred forty one United States dollars.
The consensus rating from a panel of over forty analysts
is currently a hold, with just under half rating the
stock a buy and a similar number recommending hold, while
eight recommend sell. Price targets cluster around three hundred United
States dollars reflecting a sense that the stock is fairly

(02:08):
valued at today's levels. Tesla is facing pressure from slowing
sales and increased competition, especially in major markets like California
and Europe. However, substantial optimism remains regarding the company's push
into artificial intelligence and autonomous driving. The initial rollout of
the robot taxi service in Austin has generated renewed excitement,

(02:28):
and some analysts, such as those at Wedbush, believe that
artificial intelligence initiatives could eventually add up to one trillion
United States dollars in value to the company. There has
also been significant insider selling recently, including by both Kimball
Musk and the chief financial officer. In summary, Tesla's stock
is currently experiencing moderate upward momentum, though it remains under

(02:50):
scrutiny due to declining vehicle deliveries and broad market competition.
The focus now turns to second quarter earnings and the
company's continued efforts and artificial intelligence and autonomy, both of
which may play a deciding role in shaping Tesla's stock
performance in the remainder of the year.