

Investor's Corner
Tesla (TSLA) posts Q2 2018 financial results: $4B revenue, profitability in focus
Tesla’s second-quarter earnings for 2018 saw the California-based carmaker beat Wall Street revenue estimates after posting $4B billion in revenue and missed earnings estimates with a non-GAAP loss of $520 million.
The results, which were posted in an update letter to investors after the closing bell on Wednesday, August 1st, showed second-quarter earnings of -$3.06 per share, slightly worse analyst estimates of -$2.92 per share. Compared to the previous year, revenue grew 43.5%.
The company burned through $430M in cash in the second quarter.
REVENUE AND OPERATING LOSSES
The company’s revenue for the second quarter consisted of $3.36B in automotive revenue and $374M from their energy and battery storage division. Automotive revenue saw an increase of 46.8% compared to the same period last year. The energy and battery storage division saw an increase of 30.6% compared to the same period last year.
Automotive revenue increased by 22.75% compared to Q1 2018, largely due to the rapid increase in Model 3 sales, while energy generation and storage declined by 8.7%. Tesla deployed 84 MW of energy generation and 203 MWh of energy storage products in the second quarter as well.
MODEL 3
Tesla was able to deliver 18,449 Model 3 vehicles during the second quarter of 2018. In the quarter the company produced 28,578 Model 3’s. The company’s Q2 2018 Update Letter stated that the company still expects to reach its production goal of 6,000 Model 3’s per week by the end of August.
The company is aiming to reach a gross margin of 25% on the Model 3 in the long-term but set an initial goal of break-even for the second quarter. The company beat that goal in the quarter posting a slightly positive gross margin. After conducting a complete breakdown, an automotive expert recently estimated that Tesla could achieve a 30% or higher gross margin on the vehicle.
“Over the past 12 months, we have overcome bottlenecks across various stages of the Model 3 manufacturing process. Last quarter, it became clear that GA3, our main general assembly line, would likely become a production constraint if certain issues were not addressed. This assembly line, which is where we add all the components to a painted metal body, was designed to work with hundreds of robotic lifters that bring components to the line. Due to the density of the line and the relatively high downtime of the lifters, ramping GA3 became substantially more complicated than we had anticipated. That said, significant progress has been made in the last few months, and GA3 is now expected to reach a production rate of 5,000 per week very soon,” Tesla stated in the letter.
The company reported that they have received over 60,000 test drive requests for the Model 3. Most Tesla stores received their first Model 3 test drive vehicles and the company plans to continue deploying more Model 3’s to other stores, with a focus on the new Model 3 Dual Motor Performance. The company stated that early results show that the Model 3’s “test drive-to-order conversion rate” is higher than the Model S and X.
TESLA ENERGY
Tesla deployed 203MWh of energy storage in the second quarter and 84MW of solar energy generation systems. Tesla stated that the company’s solar and energy storage division has undergone massive changes as they prepare to exclusively sell the products online and at Tesla stores.
Energy Storage and Generation generated $374M worth of revenue for the company in the quarter. Tesla stated that 68% of all installations were cash and loan based, compared to lower-revenue generating lease-based sales.
“We are steadily ramping Solar Roof production in Buffalo and are also continuing to iterate on the product design and production process, learning from our early factory production and field installations. We have deployed Solar Roof on additional homes in Q2 and are gaining valuable feedback from each new installation. We plan to ramp production more toward the end of 2018 and are working hard to simplify the production and installation process before deploying significant capital into factory automation,” Tesla stated in the quarterly letter.
GUIDANCE FOR THE END OF 2018
Tesla still expects to deliver 100,000 Model S and X vehicles for 2018. The company also stated it targets to produce 50,000-55,000 Model 3’s in the third quarter. Tesla still did not disclose an overall production target for the Model 3 in 2018. The Model 3 is expected to carry a 15% gross margin for the third quarter and 20% in the fourth quarter.
Tesla reiterated that they expect to be GAAP profitable in both the third and fourth quarter of 2018. Tesla also stated that they expect the company to be profitable going forward, despite rapid growth.
Tesla has just over $2.23 billion in cash at the end of the quarter, down from $2.67 billion in the previous quarter.
Today’s trading session ended with TSLA closing up .9% at $300.85. After-hours, the stock was trading up 3.9%.
Tesla’s full Q2 2018 Update Letter can be accessed here.
Investor's Corner
Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley
Jonas assigned each robot a net present value (NPV) of $200,000.

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker.
In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.
Morgan Stanley highlights Optimus’ savings potential
Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.
“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.
Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.
Musk’s political ambitions
The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States.
Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.
Investor's Corner
Two Tesla bulls share differing insights on Elon Musk, the Board, and politics
Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.
While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.
Ives warns of distraction risk amid crucial growth phase
In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock.
Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.
Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.
Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.
Cathie Wood reiterates trust in Musk and Tesla board
Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.
Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.
TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.
Investor's Corner
Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries
Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report.
Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.
Tesla’s Q2 results
Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.
In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.
Tesla’s stock is still volatile
Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump.
Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.
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