Investor's Corner
Tesla’s (TSLA) Q2 2019 earnings call with Elon Musk set for July 24
Tesla (NASDAQ:TSLA) has announced that it would be posting its financial results for Q2 2019 after the market closes on Wednesday, July 24, 2019. The company would be issuing a brief advisory with a link to its Q2 2019 Update Letter, which will be accessible from Tesla’s Investor Relations website. A live Q&A session is set for 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time) to discuss the electric car and energy company’s financial results and outlook.
Analysts polled by FactSet currently expect Tesla to report an adjusted loss of $0.45 per share on sales of $6.6 billion in the second quarter, which compares favorably with an adjusted loss of $3.06 per share on sales of $4 billion in Q2 2018. So far, the rather early earnings call date appears to have been received well by the market, with Tesla shares trading 1.81% at $242.91 per share as of writing.
Tesla’s financial results for the second quarter are up for question, considering that Elon Musk has mentioned that Q2 2019 could see a loss once more. Nevertheless, expectations are high that Tesla’s finances in Q2 will be more palatable compared to the company’s first-quarter results, which showed a loss of $702 million, thanks in part to delivery difficulties to international markets such as Europe and China. These challenges were expected to have been mostly addressed in the second quarter, paving the way for a potential return to profitability in Q3 2019.
Quite interestingly, Tesla’s rather early second-quarter earnings call announcement comes amidst news of challenges being faced by companies considered as the Silicon Valley-based carmaker’s rivals in the EV market. Among these is NIO, widely called the “Tesla of China,” which is seeing some roadblocks in its momentum. NIO had a promising start in 2018, but recent months have been difficult for the company, as reflected in the electric car maker’s slumping sales, the departure of US CEO Padmasree Warrior, and concerns about the quality of the company’s vehicles. These challenges have been reflected in NIO’s stock price, which has declined 42% since its IPO in September.
Fellow Chinese EV startup Seres (formerly known as SF Motors), at one point also deemed a potential rival to Tesla, was racked with a round of layoffs for its US staff. The company had employed about 300 people in Santa Clara as it planned a potential US launch for its first electric vehicle, the all-electric SF5 SUV. But at a recent staff meeting, the company announced that it would be laying off 90 employees at its US headquarters in Santa Clara.
BMW, which is trying to get its momentum back in the electric car market, also faces some challenges with its freshly unveiled Mini Electric. The vehicle, which actually looks pretty fun, has notably underwhelming specs, with a paltry 146 miles of range, a starting price of $35,000, and technology that’s primarily based on the aging i3, a competitor of the early versions of the Model S. This is far below the bar set by vehicles like the Tesla Model 3 Standard Plus, which starts just below $40,000, but has 240 miles of range and standard features like Autopilot.
These challenges faced by young companies like NIO and veterans like BMW show that the electric car segment, which Tesla has survived in for 16 years now, is becoming a very tough business to crack. With other companies like Kia and Hyundai coming up with low-priced EVs that are bang for the buck like the Niro EV and Kona Electric, and with Tesla widening its lead over the competition with the Model 3, the electric car segment is only bound to get more competitive. It wouldn’t be surprising to see companies with weaker hands get shaken off in the coming years.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Tesla CEO Elon Musk sends rivals dire warning about Full Self-Driving
Tesla backtracks on strange Nav feature after numerous complaints
