Tesla Q2 25 Earnings - Why It Is Important

koolgal
07-23

🌟🌟🌟Today is July 23, an important day for Tesla as it will reveal its Q2 25 earnings.  This quarter is a moment of truth for Tesla.

Why it is important 

This quarter is the litmus test for Tesla's resilience and its ability to pivot from hardware to software driven growth. 

Tesla's margins are squeezed:  Price cuts, EV tax credits rollbacks and rising costs have pinched Tesla's profits.  Q2 25 earnings will reveal whether Tesla can still generate enough revenue to keep investors smiling. 

Growth vs Hype :  Tesla has pulled its full year guidance last quarter.   Analysts and  investors alike now want the truth - Tesla's real metrics and real direction. 

Brand Volatility : Elon Musk's political entanglements have dented global demand, notably in Germany and the US.  This quarter tests whether Tesla's tech narrative can overcome public sentiment.  Also the effect of the fallout with Trump and Elon Musk forming his own political party. 

Pivot to Autonomy and AI:  Robotaxis, FSD subscriptions and Grok, the new xAI chatbot are all stepping into the spotlight.  Tesla is shifting investor focus from declining deliveries to futuristic tech. 

In a nutshell, this earnings call isn't just about what Tesla did.  It is more about what it promises to do next.  In Elon Musk's world, that could mean anything from humanoid robots to new developments in Grok. 

The Set Up

Deliveries are down 13.5% year over year.  Revenue is projected to be USD 22.75 billion vs USD 25 billion last year.  EPS - USD 0.40, down 25%.  Cybertruck sales - Fewer than 5,000.  Low cost Tesla EV Delay - the much hyped USD 25, 000 model codenamed "Redwood" has missed its H1 25 launch window.  Now expected late 2025.

Silver Clouds In the Lining 

Robotaxis are rolling through Austin. Slowly but they are rolling. 

FSD subscriptions jumped 35% QoQ with 20,000 new customers. 

Energy deployment hit 9.6 Gwh.  Megapacks are selling well. 

Grok, Tesla's new in car AI from xAI, is now live in new vehicles.  It jokes, narrates.  It is Infotainment with attitude. 

Analysts : Bulls vs Bears 

Dan Ives of  Wedbush: USD 500 price target.  He sees Tesla entering a golden age of autonomous growth. 

JPMorgan : USD 115 price target.  Focused on delivery declines and Elon Musk's distractions. 

Guggenheim : USD 175 with a Sell Rating.  It is concerned about Tesla's fundamentals. 

Average Target : USD 294.

Tonight : Elon Musk Unplugged 

Expect the call to cover Elon Musk's big dreams - the future of Robotaxis, AI ecosystems, a compact EV for the masses and more on Grok. 

Concluding Thoughts 

Tonight is a crossroad moment for Tesla where market reality and Elon Musk's moonshot ambitions collide at full speed. 

Will Tesla prove it can scale cliffs with innovation and charisma?  Or are we entering the cool down lap of its hyper growth sprint? 

Whatever happens, one thing is for sure.  It will not be dull.  Elon Musk will weave his magic and hopefully keep Tesla's future growth intact. 

@Tiger_comments  @TigerStars  @Tiger_SG  @CaptainTiger  @Daily_Discussion  @TigerClub  


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