What to Expect From Tesla’s Upcoming Q2 Earnings Report

What to Expect From Tesla’s Upcoming Q2 Earnings Report

Tesla reported record second-quarter deliveries last weekend, leaving many analysts and investors eager for the company’s Q2 financial report. Set to happen on Wednesday, July 19, the report will include Tesla’s financial details for the quarter, as well as a live Q&A session via online webcast.

Above: A Tesla Model Y (Image: Casey Murphy / EVANNEX).

The second-quarter earnings call will take place via an online forum on Tesla’s investor relations website, with the Q&A set to start at 4:30 p.m. Central on July 19. Following the release of its delivery and production details for the quarter last weekend, Tesla’s stock jumped early in the week before leveling out later in the week. At the time of writing during after-hours trading on Friday, Tesla’s shares are trading at $274.88 (+$0.44), up 0.16 percent from the market’s close.

After Tesla’s Q2 deliveries beat many Wall Street expectations, some analysts have raised their price targets on the stock in the days since. One such analyst, as detailed by Barron’s, includes Mizuho analyst Vijay Rakesh, who boosted his Tesla price target to $300 from $230 citing impressive Q2 deliveries. Rakesh even went so far as to say that Tesla would likely be “the global EV leader for the next decade.”

“Major automakers noted June strength in the U.S. from pent-up demand, China saw holiday discounts driving demand,” Rakesh wrote.

Despite Tesla’s 466,140 Q2 deliveries landing above what Wall Street analysts forecasted, some are citing fears of inflation and recession, with some claiming that near-term macroeconomic concerns still remain for the automaker. Additionally, some analysts argue that growing competition and rising interest rates could keep Tesla in a tight spot.

While some bulls point to the success of Tesla’s price cuts in stoking demand, noting the recent delivery records, bears are concerned about how the reductions will affect margins. Truist Securities analyst William Stein, who rates Tesla stock a Hold with a price target of $240, points to the potential for decreased profit margins due to price cuts, and to rising competition.

“Unfortunately, in the near-term, we expect macro-economic and perhaps competitive forces to continue to pressure the company’s automotive average selling prices and margins,” Stein wrote on Monday.

Wedbush analyst Dan Ives, a longtime Tesla bull, notes the automaker’s strong production and its delivery numbers as evidence of high demand. Currently, Ives has a $300 price target on Tesla’s stock with an Outperform rating.

“Price cuts implemented early in 2023 have paid major dividends for Musk & Co. as demand appears to remain very strong and production efficiencies have allowed for the massive deliveries beat this quarter,” Ives wrote on Sunday.

You can listen to Tesla’s Q2 2023 earnings call at its investors relations page here. The event is set to begin on July 19, 2023 at 4:30 p.m. Central.


Sources: Tesla / Barron’s