Investor's Corner
Tesla (TSLA) Q2 2018 financial report and earnings call: What to expect
Tesla (NASDAQ:TSLA) is set to release its financial report for the second quarter after markets close on Wednesday, August 1, 2018, followed by its Q2 2018 earnings call at 2:30 p.m. PST (5:30 p.m. EST).
With a vast majority of the second-quarter spent pushing volume production of Model 3, questions are abounding if vehicle demand matches company claims and if Tesla is finally on its way to profitability. Arguably, the elephant in the room will be indicators on whether the company will have to raise more capital due to what Wall Street analysts widely regard as Tesla’s cash flow challenges. Here is an outline of things to expect in Tesla’s Q2 2018 financial results and earnings call.
Tesla’s Losses and Revenue
Considering that the electric car maker continued to invest heavily in the Model 3 ramp over Q2, a consensus among Wall Street analysts suggest that Tesla would be reporting a loss of $2.81 per share. Among 21 analysts, the range for expectations made public about the company’s losses for the second quarter spans from a loss of $3.44 to $1.71 per share.
Wall Street analysts estimate that Tesla would post revenue of around $3.97 billion, which is significantly higher than the $2.79 billion the company posted for the second quarter of 2017. If analysts’ predictions are correct, Tesla would be able to post a year-on-year growth of $42.3%. Ultimately, Tesla’s revenue would be a compelling point in the company’s financial report, validating CEO Elon Musk’s narrative that the electric car and energy company continues to see strong demand in the past seven quarters. Tesla’s revenue has increased sequentially in each of the last six quarters as well.
Model 3 Ramp and Delivery Guidance
Tesla is expected to give an update on the current state of Model 3 production. With the electric car maker managing to hit its self-imposed target of manufacturing 5,000 Model 3 per week in a “burst build effort” during the final week of June, questions are now abounding about the company’s capability to exceed this production rate.
Tesla’s plans and strategies for the delivery of the Model 3 are also expected to be discussed in the Q2 earnings call. With the company recently selling its 200,000th vehicle in the United States, Tesla would likely provide delivery guidance for the Model 3 as the $7,500 federal tax credit starts its phase-out period.
Tesla Energy
Tesla Energy has slowly been growing in the background as the company’s electric car business stayed in the limelight. Over the past months, Tesla has teased several key developments in its Energy business. During the 2018 Annual Shareholder Meeting, Elon Musk mentioned that the company is on pace to “cross a key battery-cost threshold of $100-per-kilowatt-hour later this year.” Such a milestone could cut the cost of its upcoming products such as the Model Y, while pushing Tesla forward as a leader in battery technology.
Updates on large-scale Tesla Energy initiatives, including a 1 GWh scale energy project that Musk teased in the Shareholder Meeting, as well as the South Australia virtual power plant, would likely be discussed as well.
Financial Guidance
Tesla CEO Elon Musk has made his stance clear during the now-infamous Q1 2018 earnings call that he does not intend to raise capital this year. Musk has also reiterated his prediction that Tesla would be profitable in the third or fourth quarter of 2018. This goal, however, hinges on the successful ramp of the Model 3.
During Tesla’s update on vehicle deliveries for Q1, the company stated that the 5,000 Model 3 per week milestone is expected to lay “the groundwork for Q3 to have the long-sought ideal combination of high volume, good gross margin, and strong positive operating cash flow.” Tesla’s Q2 2018 earnings call would likely cover how the company plans to hit the green for the second half of the year.
A webcast of Tesla’s Q2 2018 earnings call could be accessed here on Wednesday at 2:30 p.m. PST (5:30 p.m. EST).
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
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@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
Investor's Corner
Ron Baron states Tesla and SpaceX are lifetime investments
Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Baron doubles down on Tesla
Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.
“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.
A lifelong investment
Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.
“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”
Watch Ron Baron’s CNBC interview below.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
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