Nidhish Waghmare
Elon Musk’s Tesla had excellent performance in the first half of the year but he is probably a little nervous in second-quarter as Tesla had a lackluster earnings report uncovered the electric vehicle maker once again missed investors expectations.
Tesla sales declining in second-quarter
The automaker had been expecting some positive results, however Tesla reported two straight months declining reports of sales and the stock was declined over 40% year-to-date in April
The EV maker’s second-quarter earnings report revealed the investor concerns, missing earnings estimates and reiterated a delay in its much-awaited Robotaxi uncovering in its earnings call.
Analysts supporting Musk during his fall
Tesla stock fell nearly 8% but still there are some analysts and investors, supporting Musk and they still live with the company. They know that this is just a phase and it will pass, looking at the long run
Gene Munster, managing director at Deepwater Asset management said,
“I’m still in the camp that they’re going to deliver on these. They won’t deliver it on time, but ultimately, no other car company is doing what Tesla is doing, and I think this is still going to move higher.”
“There are other companies that have a $3 trillion market cap- I think Tesla can be in that league. Today is not the day to be thinking about it, with these ugly margins, but I think the company is firmly on track with where the world is going.” Munster added.
Another analyst Wedbush said on price hikes “Price cuts appear to be mostly done with price increases in some regions/models seen the last few weeks.”
Musk’s bluntly replies on investor questions
Musk was asked questions from several investors and analysts on topics such as the company’s declining revenue from car sales, delay in the project of its Robotaxi project and lastly whether the company’s strategy is to continue with limited-release models or investing in large-scale production of a lower-cost model.
Musk replied, “We’re going to make great products in the future, just like we have in the past. End of story,”
Tesla sales are declining despite offering discounts, it is decreasing the company’s profitability and demand. As per the reports Musk has promised the innovation in the industry through Robotaxi but still investors are skeptical about it.
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