Tesla Inc. TSLA reported its second-quarter financial results on July 19 and the reactions by financial gurus on Twitter came quickly and showed that the company is still a master of the EV game.
What Happened: Tesla reported its earnings today with its second-quarter revenue reaching $24.93 billion, representing a 47% increase compared to the previous year and beating the Street consensus estimate of $24.48 billion.
The company also highlighted the highly anticipated Cybertruck, which remained on track for initial deliveries this year. Tesla mentioned testing the vehicles globally for certification and validation. The 4680 Cell’s production had notable progress on its production lines and Tesla mentioned its focus on artificial intelligence and the production of the Dojo Training computer.
For more information on the earnings, click on: Tesla Q2 Earnings Highlights: Revenue Beat, EPS Beat, Cybertruck Update And More.
The Reactions: The reactions were generally positive to the report. Dan Ives of Wedbush Securities believed Tesla's second-quarter results demonstrated that the company continued to outperform other electric vehicle (EV) players strategically.
“The auto ex-credits gross margin beat was front and center and is clearly an indication that Musk & Co continue to play chess while other EV players are playing checkers. Overall this was a goldilocks 2Q print by Musk & Co. Now all focus on conf call and margins/price cuts,” Ives tweeted.
Ross Gerber of Gerber Kawasaki Wealth and Investment Management tweeted: “Tesla earnings are out. .91 is a beat. Margins at 18.2% is the low end. Good free cash flow. Nothing too out of the ordinary. A solid report.”
A subsequent tweet by Gerber stated: “Tesla energy revenue up 74% YOY. Continuing to drive growth despite rarely being the headline.”
The Future Fund’s Gary Black chimed in on Twitter as well: “$TSLA 2Q solid beat on Adj EPS ($.91 vs Street $.82), and was in line on Auto GM ex-RC (18.1% vs Street 18.2%, vs 19.0% in 1Q). Quality of earnings was good (RC $282M lower than $375M exp; tax rate 11.0% in line; +$328M non-operating income from FX added $.08/share to EPS may prompt questions). Energy profits nearly tripled. FCF $1.1B was light vs WS exp (but higher than my est $1.0B). No surprises in the outlook (2023 production of 1.8M still expected, Cytruck on track later this year).
He added, “Some bears squawking about $328M non-operating income (added +$.08/share to EPS) due to FX impacts on some inter company accounts. Doesn’t seem like big deal but likely to come up on conf call.”
Twitter user Diogenes (@WallStCynic) took a look at Tesla's earnings and pointed out that the beat was primarily driven by “a $400 million swing in 'Other Income.’”
Diogenes also noted that operating income was down 3% year-over-year and 10% quarter-over-quarter. And, energy segment revenues were down compared to the previous quarter.
Deepwater Asset Manager's Gene Munster tweeted that the production ramp for the Cybertruck will be slow due to the inclusion of new technology. He predicted that the first deliveries of the Cybertruck might take place in December, and high-volume production is expected in 2024.
See Also: Ford Worried About Tesla's Cybertruck, Says Analyst After F-150 Lightning Price Slash: 'Now Both Models Start At...'
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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