Tesla reported second-quarter revenue of $22.5 billion, down 12% year-over-year. The company said volume production of a more affordable model is on track for the second half of 2025.
00:09And it looked like we were moving a little bit higher.
00:12Now with the earnings print here, Tesla down 4.4% here.
00:15And we're giving up all three of those moving averages that we just talked about.
00:19So now that we're trading beneath it, I've got a couple of levels here.
00:22Definitely think the 300 round number will come into play.
00:26But more specifically than that, this 295 area with the 100-day moving average should provide ample support.
00:32This was also near a recent low at 290, 291.
00:36And as far as upside levels, you can just very simply use the moving averages here.
00:40I've got 315.5, 319.32, and 326.50.
00:47So those upside levels will represent the 20, 250-day moving average.
00:52And I would imagine that if Tesla has any type of bullish run here today, it would likely find some resistance at those levels.
00:59It might go through them, but it will likely find some short-term resistance there.
01:03Here's Tesla's earnings.
01:05So what happened?
01:06Tesla reported second quarter earnings revenue of $22.5 billion, down 12% year over year.
01:12The revenue missed a street consensus of $22.8 billion.
01:15So it missed slightly there, but it still did miss.
01:17The company reported automotive revenue of $16.66 billion, which was down 16% year over year.
01:24Tesla earnings per share were $0.40 in the coming quarter, missing a street consensus estimate of $0.42 per share.
01:33The company said revenue declined due to lower deliveries, lower regulatory credit revenue, and lower average selling prices, offset slightly by growth in services and other revenue.
01:43And that part's important because we've talked a lot about Optimus, the robots, automation, and AI.
01:49We kind of already see in some of the report that when they have weak car sales, there are other things that this company does to kind of offset that.
01:57And my suspicion is that as we move forward here, there are going to be more and more things that offset that.
02:03We've talked a lot about Optimus, automation, the whole thing.
02:06I think that can make a significant or be a significant driver of Tesla's profit, although it might take some time for that to materialize.
02:15The company said operating income was $0.9 billion in the quarter.
02:22That's down 42% year over year.
02:24Tesla's operating margin was 4.1% from the quarter.
02:26Tesla previously reported second quarter deliveries of 384,122, which was down from 443,956 in the same quarter last year.
02:38Production of 410,244 units in the quarter were down slightly from the 410,831 units in last year's second quarter.
02:48The company called the second quarter a seminal point in history as the beginning of a transition from leading electric vehicles and renewable energy industries to also becoming a leader in AI and robotics.
03:00Again, this is going to be key for Tesla and the future price of Tesla stock.
03:05Tesla highlighted the launch of its first robo-taxi service in Austin, Texas in June.
03:09The company has ended the quarter with $1.24 billion in digital assets on the balance sheet, likely related to its Bitcoin holdings.
03:18The value increased from $951 million in the previous quarter following Tesla's recent adoption of new reporting method for valuing its cryptocurrency holdings.
03:27Now, what's next?
03:29Tesla said it continues to expand its vehicle offerings with the first builds of a more affordable model in June and volume production plan for the second half of 2025.
03:39Now, if they can execute on this, this is going to be key because with the removal of the tax credits,
03:43it makes sense to have a cheaper model kind of soak up some of the lower-priced buyers there, and we'll see if that makes a difference here for Tesla, although I believe that margins on that should be a lot tighter.
03:54Tesla is also continuing the progress of the Tesla Semi and CyberCab, both planned for volume production in 2026.
04:00We'll see if those time estimates were correct.
04:03Despite a sustained, uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment,
04:12we continue to make high-value investments in CapEx and research and development while ensuring a strong balance sheet.
04:18Tesla said its priorities remain as delivering affordable, autonomy-capable vehicles, growing the energy business, and advancing robotic efforts.
04:26The company said it has enough liquidity to fund its product roadmap, so that shouldn't be an issue.
04:31Quote, we are making prudent investments that will set up both our vehicle and energy businesses for growth.
04:37The actual results will depend on a variety of factors, including the broader macroeconomic environment,
04:42the rate of acceleration of our autonomy efforts, and production ramp at our factories.
04:47So you had asked me earlier, what do I think about the Tesla report?
04:50Well, the report was not great, but pretty much everything that was in here was already expected.
04:56So I don't really see a whole lot of surprises here, and I would be tempted to say that Tesla is more than likely going to hunt for its bottom and then bounce from there.
05:06I think some of the future prospects are still really good here, and I think one of the big things, as we had asked from our viewers here quite often,
05:15is that Elon Musk returning to actually being the CEO, you know, he's there seven days a week and sleeping at the office, that's viewed as a positive.
05:25And I would imagine that that would continue here for Tesla.
05:29So I think that the pullback, just too long, didn't read, abbreviation of that.
05:36While I understand the pullback, I actually think it represents a buying opportunity.
