(Boursier.com) — You’re here dropped 4.2% after trading on Wall Street yesterday Wednesday. The group of Elon Musk did not however deserve in the second fiscal quarter, exceeding the profit consensus, but the operators mainly retained that the price cuts had weighed on the margins. Musk was also relatively confident about the progress of autonomous driving and the use of “humanoid” robots in his factories, while the markets are currently obsessed with the theme of artificial intelligence. The billionaire judges that the expected autonomy of the vehicles will make the current slide in margins insignificant. He even indicated that Tesla could again reduce prices during “turbulent” periods, judging that it could indeed make sense to sacrifice margins to sell more vehicles.
For its second quarter, the group posted adjusted earnings per share of 91 cents compared to a consensus of 82 cents and a level of 76 cents a year earlier. Revenue totaled $24.93 billion, up from $16.93 billion a year earlier. The consensus was placed at approximately 24.5 billion dollars in turnover. Tesla’s price cuts helped the electric vehicle maker grow its installed base and attract new customers, with deliveries up 86% to 466,140 vehicles marking a record quarter for the company. Tesla said it remains on track for initial deliveries of its Cybertruck this year. Earlier this week, the electric vehicle maker said it had started production of its Cybertruck in Texas. The Texan group declared a net profit of 2.7 billion dollars for the quarter, up 20%, slower than that of turnover which reached 47%. Excluding stock-based compensation expenses, Tesla’s net profit soared to $3.15 billion.
Tesla’s quarterly automotive gross margin, excluding regulatory credits, fell to 18.1% in the second quarter from 19% in the first quarter, according to Reuters calculations. A year earlier, the group had posted 26% automotive gross margin. Tesla reported an overall gross margin of 18.2% for the April-June period, the lowest in 16 quarters, down 6.8 percentage points – but fairly close to analyst expectations. Earlier, Tesla made it clear that it was focused on cutting costs and developing new products. Tesla reiterated its expectation of deliveries of around 1.8 million vehicles this year, but said third-quarter production would decline slightly due to planned downtime for factory upgrades. Musk also slipped at the keynote last night that Tesla was in talks with a major equipment maker to license its driver-assist full self-driving (FSD) software.
The consolidation of the title seems legitimate in the short term, while the file had soared by nearly 140% this year. The opinions of specialists are very diverse after the announcements. Citi maintains a ‘neutral’ advice and posts a target of $278. Wedbush, when buying, is aiming for $300. Guggenheim, on the other hand, advises to sell and aims for $125.
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