Tesla achieved its highest-ever Q2 vehicle deliveries, but despite this, the company's earnings declined and gross margins compressed to 16.3% excluding credits. The delivery boost was driven by drawing down inventory and offering heavy financing subsidies, which pressured profitability. Capital expenditures surged 142% year-over-year to $5.79 billion, turning free cash flow negative, with management indicating further spending increases as major projects continue. While growth in Full Self-Driving subscriptions and regulatory progress in autonomy offer potential upside, delays in EU-wide approval and insufficient current autonomy revenues limit offsetting core margin pressures. Following the earnings report, Tesla's stock fell about 7.5%, marking its worst day in nearly a year.
Tesla posted revenue growth in Q2 but missed earnings per share expectations, with operating margins dropping sharply to 1.4% and free cash flow turning negative. The company’s costly projects like Optimus, Cybercab, and Megapod lack clear profitabil...
Tesla's Q2 deliveries were overwhelmingly led by Model 3 and Model Y, making up over 97% of total deliveries. Despite strong growth in energy storage, Tesla faces margin pressure due to rising input costs and growing competition, particularly from Ch...
UBS analyst projects a 23% upside for Tesla stock with a $460 price target, driven by record global deliveries and strong demand for the Model Y. Tesla's energy business and Full Self-Driving feature also show growth potential. However, heavy investm...
ServiceNow shares rose about 7% in premarket trading after the company reported earnings and revenue that exceeded expectations, continuing a streak of over 20% year-over-year revenue growth for five quarters. CEO Bill McDermott emphasized strong dem...
Tesla and Alphabet both reported increased spending on artificial intelligence, causing their shares to fall in premarket trading. Alphabet raised its capital expenditure forecast to $195-205 billion for the year, citing the need to meet growing AI d...
