Tesla Q2 earnings preview: Key updates on Robotaxi, affordable EVs for bulls

Tesla's Q2 Results Focus on Future Roadmap and Key Initiatives

Tesla's second quarter report, due post-market close on Tuesday, has investors closely monitoring the electric vehicle (EV) manufacturer's upcoming vehicle lineup, robotaxi rollout, and its other ventures such as AI and Tesla Energy. Although Tesla’s stock remains flat year-to-date following an early-year downturn, recent enthusiasm around its robotaxi project, shareholder activities, and potential new growth avenues has driven a nearly 38% surge in the past month. However, a delay in the robotaxi reveal has led to some investor hesitation.

Elon Musk indicated last week that Tesla would delay its robotaxi reveal, initially set for August 8. In response to a query about the robotaxi changes and delay, Musk mentioned a significant design change to the vehicle's front, which also allowed time for additional features. With the robotaxi timeline uncertain, investors are eager for updates on the vehicle's debut during the earnings call. Analyst Dan Ives emphasized the importance of addressing this delay, as the AI and Full Self-Driving (FSD) story's path to monetization is crucial for Tesla's valuation prospects.

Q2 Financial Expectations

For the second quarter, Tesla is projected to report revenue of $24.59 billion, a slight increase from Q1's $21.30 billion, but just short of the $24.93 billion reported in the same period last year. Analysts expect an adjusted EPS of $0.60 with an adjusted net income of $2.15 billion and an operating profit of $1.88 billion. Q1 results fell short of expectations, but Tesla's announcement to expedite the launch of more affordable vehicles boosted its stock in April.

The introduction of a cheaper EV is seen by many as a catalyst for the next phase of EV sales growth. As Tesla's vehicle sales growth has slowed, signaling a new pillar of growth would be a positive development. In Q2, Tesla delivered 443,956 vehicles globally, surpassing the 439,302 estimations but marking a nearly 5% decline from the previous year. Nevertheless, this was an improvement from the 386,810 vehicles delivered in Q1, easing concerns about falling demand for Tesla vehicles.

Energy Segment Surprise

An unexpected highlight from Tesla's Q2 was the deployment of 9.4 GWh of battery energy storage, its highest quarterly amount ever and more than double the first quarter’s figures. Morgan Stanley’s Adam Jonas described this deployment figure as a “show stealer,” emphasizing that it doubled expectations. Jonas noted that Tesla Energy could gain increased investor attention, valuing the segment at $36 per Tesla share, or $130 billion, given its strategic positioning to benefit from U.S. electric grid investments accelerated by the AI boom.

Investors can expect CEO Elon Musk and other Tesla executives to detail the energy business more comprehensively, alongside discussions on future product plans and possibly Musk's views on the upcoming presidential election, during the Tuesday call.

Additional Information

Tesla’s future roadmap, including updates on the robotaxi, the introduction of affordable EVs, and further developments in Tesla Energy, is critical for shaping investor sentiment and determining the stock's performance. The anticipated announcements post-earnings could provide deeper insights into how Tesla plans to navigate its competitive landscape and capitalize on growth opportunities.