Core Insights - Tesla's second-quarter earnings report indicates a significant decline in performance and global market share, with automotive revenue dropping to $16.7 billion from $19.9 billion year-over-year [1] - Regulatory credit sales fell by over 50% to $439 million, contributing to a nearly 8% drop in Tesla's stock price [1] - The company delivered 384,000 vehicles in the quarter, reflecting a 14% year-over-year decline, highlighting a slowdown in demand for Tesla's electric vehicles [3] Financial Performance - Automotive revenue for the second quarter was $16.7 billion, down from $19.9 billion in the same quarter last year [1] - Regulatory credit sales decreased to $439 million, a decline of more than 50% [1] Market Share and Demand - Tesla's market share in the EU, UK, and EFTA countries fell to 2.8% in June, down from 3.4% a year earlier [4] - New car registrations for Tesla dropped by 22.9% year-over-year in June, marking the sixth consecutive monthly decline in market share in Europe [4] Future Outlook - CEO Elon Musk indicated that "a few rough quarters" could be expected due to the phaseout of U.S. federal EV tax credits [5] - Wall Street predictions for Tesla's stock over the next 12 months range from as low as $19.05 to as high as $500 [6]

Core Viewpoint - Tesla's shares fell by as much as 10% following a significant sales drop, marking the steepest decline in over a decade, with CEO Elon Musk indicating that the downturn may persist for several quarters [1][2][3] Financial Performance - Tesla reported a 16% decline in revenue from car sales, totaling $16.7 billion in the second quarter compared to the previous year, marking the second consecutive quarter of declining sales [1][9] - The company missed Wall Street's expectations for both earnings per share, reporting adjusted earnings of 40 cents versus the anticipated 43 cents, and overall revenue, which came in at $22.50 billion against an expected $22.74 billion [9] Future Outlook - Musk suggested that the negative sales trend could continue into the fourth quarter of this year and the first half of 2026, with potential improvement expected in the latter half of next year as Tesla launches its expanded "Robotaxi" service [3][4] - The company aims to have autonomous ride-hailing available to about half of the U.S. population by the end of the year, contingent on regulatory approvals [4] Market Challenges - Analysts have pointed to several factors contributing to Tesla's sales slump, including the impact of tariffs, the end of federal electric vehicle tax credits, rising competition from companies like BYD in Europe and China, and an aging car lineup [2][6][9] - The elimination of the $7,500 tax credits, which had previously supported Tesla's sales, is seen as a significant challenge for the company [5] Strategic Initiatives - Musk emphasized the importance of the Robotaxi initiative and Tesla's Optimus humanoid robots for the company's future growth [11] - Despite current challenges, some analysts maintain a bullish outlook, suggesting that Musk's focus on an aggressive AI strategy could benefit Tesla in the long run [13]

Core Viewpoint - Tesla's recent earnings report showed mixed results, with revenue declining nearly 12% year-over-year but non-GAAP EPS at $0.40, indicating some recovery potential despite high investor expectations [2][4][9] Financial Performance - Revenue declined nearly 12% year-over-year, but the decline was not as severe as anticipated [2] - Non-GAAP EPS was reported at $0.40, indicating profitability [2] - Deliveries increased compared to Q1, and margins showed improvement, suggesting a potential recovery phase for the company [2][4] Market Reaction - Following the earnings report, Tesla's stock price fell more than 6% ahead of Thursday's open, reflecting cautious investor sentiment [2][10] - The stock's P/E ratio is around 180, indicating high expectations that may not have been met [2][3] Long-term Outlook - CEO Elon Musk confirmed plans for a lower-cost vehicle by the second half of 2025 and a robotaxi rollout expected to reach half of the U.S. population by year-end, which could support long-term growth [4][9] - Analysts from Wedbush reiterated an Outperform rating with a price target of $500, suggesting a potential upside of approximately 50% [7][8] Investment Sentiment - Despite short-term corrections, there is a belief that the stock could rebound if investor sentiment aligns with improving deliveries and product innovation [10][11] - The market tends to look forward, especially for a brand like Tesla, which is showing signs of stabilization [9]

Core Insights - The article discusses the expertise of Vladimir Dimitrov, CFA, who has a background in brand and intangible assets valuation, particularly in the technology, telecom, and banking sectors [1] Group 1: Professional Background - Vladimir Dimitrov has experience as a strategy consultant and has worked with major global brands [1] - He graduated from the London School of Economics, indicating a strong academic foundation [1] - His focus is on identifying reasonably priced businesses with sustainable long-term competitive advantages [1]

I discussed why I increased my Tesla, Inc. ( TSLA ) position around the lows in March and April, as well as on the massive early June drop when CEO Elon Musk's Twitter storm erupted, which included theAre You Getting The Returns You Want? Invest alongside the Financial Prophet's All-Weather Portfolio (2025 35% YTD return) and achieve optimal results in any market.The Daily Prophet Report provides crucial information before the opening bell rings each morning.Implement my Covered Call Dividend Plan and earn ...

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UBER either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any in ...

Tesla's ( TSLA ) shares have been highly volatile in the last year, and the electric vehicle company, despite delivery and revenue headwinds, is holding up well. The EV company reported a double-digit drop in its revenue inAnalyst’s Disclosure:I/we have a beneficial long position in the shares of TSLA, BYDDF, RIVN, NIO, LI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeki ...

I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. My previous working background is in private credit and CRE mezzanine financing for a family office. I'm also a fluent Mandarin speaker in both business and court settings, previously serving as a court interpreter. I have spent a good chunk of my adult working life in China and Asia. I have worked with top CRE developers in the past including The Witkoff Group , Kushner Companies, Durst Organization and ...

Core Viewpoint - Tesla Inc.'s core car-making business is facing a deteriorating outlook, which poses a significant challenge for CEO Elon Musk to maintain stock price through his vision of a self-driving future [1] Financial Performance - Tesla is expected to report the sharpest revenue drop in over a decade, with analysts projecting adjusted earnings of 42 cents per share on revenue of $22.6 billion for the second quarter, representing declines of 18% and 11% respectively from the previous year [2][6] - Wall Street has reduced 2025 profit estimates by 28% over the last three months, indicating a significant downward revision in financial expectations [6] Market Dynamics - The company’s sales have been negatively impacted by an aging product lineup and backlash against Musk's political affiliations, leading to a 31% decline in stock value from its December peak [4] - Tesla's auto manufacturing business, which accounted for 90% of revenue in 2024, is facing challenges due to a production pause for retooling and increased competition from local brands in China [7] Regulatory Environment - Upcoming changes in federal incentives, including the removal of a $7,500 tax credit for American-made EVs, are expected to further complicate Tesla's sales environment, with the loss of these credits having generated $2.8 billion in revenue last year [9] Investor Sentiment - Despite the challenges, nearly half of analysts covering Tesla recommend buying the stock, driven by optimism surrounding the robotaxi program, which Musk predicts will see hundreds of thousands of vehicles operational by late 2026 [10] - Approximately 95% of Tesla's share price is linked to future potential, highlighting the company's reliance on long-term growth narratives [11] Competitive Landscape - Tesla faces significant competition in the self-driving space, with companies like Waymo already operating similar services in multiple cities, and partnerships forming between Uber and other EV manufacturers to launch robotaxi fleets [12]

I either put my money into low cost funds or in single stocks that (I think) are asymmetric bets. My portfolio is roughly 50/50 between the two. I like to write about Macro and Fundamentals, with the (painful) awareness that Momentum and Sentiment are what really matters. That’s the reason I never try to time the market and I only buy stocks if I am willing to hold them for at least 10 years.When it comes to fundamentals, I think everybody knows the market is forward looking, but few truly understand what t ...