In late pre-market trade the stock is down $19.97 (-8.11%) at $226.41.
From Barron's July 24:
The electric-vehicle maker’s second-quarter earnings per share disappointed investors. Now Wall Street is weighing in on Tesla.
After a better-than-feared first-quarter earnings report, Tesla delivered a worse-than-expected second-quarter result. Wall Street wasn’t impressed with the electric-vehicle maker.
Tesla reported second-quarter earnings per share of 52 cents. Wall Street was looking for earnings per share of 61 cents, according to FactSet. The company earned 91 cents a share a year ago.
The numbers were more complicated than usual. The latest quarter includes a $622 million restructuring charge. In April, Tesla disclosed it was taking a charge for employee layoffs, but the $622 million figure was larger than expected. Backing out the charge would add about 14 cents to earnings per share. Regulatory credit sales, however, were roughly $450 million better than expected. That was a positive to offset the negative of a large charge.
Overall, it wasn’t enough to help the stock. Tesla shares were down 8% in premarket trading at $226.66, while S&P 500 and Dow Jones Industrial Average futures were off 1% and 1.5%, respectively.
“Underlying second-quarter results were somewhat worse than expected,” wrote Citi analyst Itay Michaeli in a Tuesday report, adding that several positive catalysts are on the horizon, including the Oct. 10 robotaxi event, and new low-price model slated for early 2025. “Though the softer second-quarter auto margin reinforces the importance of these catalysts to support near-term sentiment.”
Michaeli rates Tesla stock at Hold and cut his price target to $258 from $274. Baird analyst Ben Kallo maintained his Buy rating on the shares with a $280 price target following earnings. He is also focused on catalysts.
“Next year is coming quickly,” wrote Kallo in a Tuesday report. He acknowledged weak second-quarter results, adding that “timelines remain intact for the robotaxi unveil as well as the next-generation vehicle alleviating concerns of a longer-term push-out.”....
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