Tesla Stock Is Trading Lower: What's Driving The Action?

Tesla Inc TSLA shares are backing up Thursday morning on the heels of the EV company's second-quarter financial results. Several analysts are out with updates following the print. 

What Happened: Tesla said second-quarter revenue increased 47% year-over-year to $24.93 billion, which beat the consensus estimate of $24.48 billion, according to Benzinga Pro. The company reported quarterly earnings of 91 cents per share, which beat estimates of 82 cents per share. 

Operating margins in the second quarter were 9.6%, while gross margins came in at 18.2%. Gross margins were down from 25% year-over-year. Analysts and investors were watching closely for margin results given the recent price cuts. 

Despite the lower margins, the company called the numbers "healthy," noting they reflect ongoing cost reduction efforts and continued production ramp success in Berlin and Texas. 

Tesla said Supercharger stations increased to 5,265, up from 4,947 in the first quarter. 

The company also confirmed that the highly-anticipated Cybertruck remains on track for initial deliveries this year. 

"We are planning to grow production as quickly as possible in alignment with the 50% CAGR target we began guiding to in early 2021. In some years we may grow faster and some we may grow slower, depending on a number of factors. For 2023, we expect to remain ahead of the long-term 50% CAGR with around 1.8 million vehicles for the year," the company said.

On a conference call following the print, CEO Elon Musk and other executives noted that third-quarter production is expected to slow down while the company shuts down factories for improvements. Shares started to drift lower during the call. 

Check This Out: Tesla Q2 Earnings Highlights: Revenue Beat, EPS Beat, Cybertruck Update And More

Analyst Assessment: 

Needham analyst Chris Pierce reiterated Tesla with a Hold.

• Barclays analyst Dan Levy reiterated Tesla with an Equal-Weight and maintained a $260 price target.
• Bernstein analyst Toni Sacconaghi reiterated Tesla with an Underperform and maintained a $150 price target.
• Wells Fargo analyst Colin Langan reiterated Tesla with an Equal-Weight and maintained a $265 price target.
• Wedbush analyst Daniel Ives reiterated Tesla with an Outperform and maintained a $300 price target.

See Also: Tesla Recalls More Than 17,000 EVs Over Camera, Seat Belt Issues

TSLA Price Action: Despite Thursday's weakness, Tesla shares are still up more than 130% year-to-date.

The stock was down 4.09% at $279.35 at time of publication, per Benzinga Pro.

Photo: courtesy of Tesla.