Tesla (TSLA) Beats Q2 Earnings and Revenue Estimates

Core Insights - Tesla reported quarterly earnings of $0.4 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, but down from $0.52 per share a year ago, indicating an earnings surprise of +2.56% [1] - The company generated revenues of $22.5 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.28%, but down from $25.5 billion year-over-year [2] - Tesla shares have declined approximately 17.8% year-to-date, contrasting with the S&P 500's gain of 7.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $25.3 billion, and for the current fiscal year, it is $1.75 on revenues of $93.86 billion [7] - The trend of estimate revisions for Tesla was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [6] Industry Context - The Automotive - Domestic industry, to which Tesla belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions, which can be tracked by investors [5]