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Investor's Corner

Tesla’s Q2 Earnings Call and how it differs from 2020’s in a big way

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Tesla (NASDAQ: TSLA) is set to report Earnings for Q2 2021 later today. Just a year and four days after it revealed its financial performance for Q2 2020, its performance during the second quarter of this year is vastly different from that of last year. With an emerging need for the company’s vehicles and energy products, along with the potential to extend its quarterly profitability streak to eight consecutive quarters, let’s take a look at how the two quarters have differed and what is expected from analysts on the day of the call.

Q2 2020 vs. Q2 2021

Tesla’s Q2 2020 remains one of the biggest “what-ifs” in Tesla’s short and storied history. While the company was riding a wave of momentum due to its three straight reported quarters of profitability, speculation persisted that Tesla might have had issues extending this streak in Q2 ’20. It was a simple enough reason as well. The COVID-19 pandemic was ripping through the world, and Tesla, despite its apparent immunization when it comes to the global semiconductor shortage, was prone to uncertainty at its manufacturing plants that spanned from Buffalo to Shanghai.

The pandemic shut down the company’s main production facility in Fremont for most of the quarter. It affected the company’s trending growth of production throughout its vehicle manufacturing facilities, and Tesla reported lower production figures than in Q1 2020, dropping from 102,627 to 88,272. Deliveries, however, increased from 88,400 to 90,650.

Tesla navigated a difficult Q2 with better-than-anticipated numbers, beating Wall Street expectations with $6.036 billion in revenue, eclipsing Wall Street estimates of $5.146 billion.

In terms of deliveries and production figures, Tesla continued growth, rising from 180,338 production and 184,800 deliveries in Q1 2021 to 206,421 and 201,250 in Q2. These numbers were attributed to the mass-market Model 3 and Model Y, accounting for an overwhelming percentage of each category for each of 2021’s quarters so far. The Model S and Model X were not being produced during Q1, and deliveries of the Model S Plaid started in Q2. The Model X delivery timeline has not been detailed, but Tesla’s website states the vehicle is set to begin deliveries in January-February 2022.

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Situations were vastly different from Q2 ’20 to Q2 ’21. Last year’s second quarter was widely up in the air on what Tesla would report. Its ability to hit profitability once again wasn’t much of a shock to Tesla bulls, but others were impressed by the continuing growth story despite tough economic times. The Q2 showing may have contributed to the automaker’s stock soaring into the stratosphere. Already on an upward trend, the stock would continue to increase in value, peaking out at $900.40.

What analysts are saying on the day of Tesla Earnings

Analysts have already put forth their expectations for Tesla’s Earnings Call later today, but some are still putting in their last two cents as market close comes closer.

Tesla investor and former critic Jim Cramer stated earlier today that he expects CEO Elon Musk to talk about competition and the upcoming release of the Tesla Cybertruck. Cramer sees Tesla’s imminent entrance into the pickup market as the company’s introduction to disrupting Ford’s domination of the U.S. passenger truck sector.

“What he [Elon] has to deal with for the first time is competition,” Cramer said. “Let’s see what he does with the challenge of others,” he added, sprinkling in details about Lucid’s introduction to the New York Stock Exchange earlier today.

Oppenheimer’s Colin Rusch, interestingly, said that the firm isn’t “super concerned about results this quarter.” Instead, Oppenheimer will be paying close mind to Tesla’s updates of the ongoing construction projects in Austin, Texas, and Germany at Giga Berlin, along with the progress of Full Self-Driving. “From a technology perspective, the progress on autonomy is really the heart of the matter if you’re making a bullish bet here,” Rusch said to Yahoo Finance.

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Tesla recently announced that it would offer a $200 per month subscription version of the $10,000 Full Self-Driving suite. Rusch said there is potential for between 10 and 20 million customers during the latter half of this decade. “You get to some pretty heavy numbers from a cash flow perspective, and I think that’s what’s going to be at stake here for the next couple years.”

$TSLA Performance on Earnings Day

At the time of writing, Tesla stock was up over 2.1%, or $13.60, trading at around $656.88. The stock was up over 3% earlier in the day. The anticipation for an extended profitability streak and potential updates regarding the 4680 battery cell, Giga Texas, and the Cybertruck, may have contributed to the increase in price ahead of the call.

Tesla will report its Earnings for Q2 2021 tonight at 5:30 PM EST, 2:30 PM PST. Prior to the call, Tesla will issue its Q2 2021 Update Letter on the Investor Relations website.

Disclosure: Joey Klender is a TSLA Shareholder.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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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.

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Credit: Tesla Optimus/X

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.

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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.

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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.

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Credit: Tesla

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.

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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.

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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.

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Credit: Tesla China

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. 

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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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