Tesla reported weak Q2 results with revenue and adjusted EPS falling, leading to a 12% drop in stock

From Nasdaq: 2024-07-28 07:40:00

Shares of Tesla (NASDAQ: TSLA) dropped 12% year to date after reporting weak Q2 results. Revenue rose 2% to $25.5 billion, but adjusted EPS fell 43% to $0.52. Automotive revenue declined 7% to $19.9 billion due to lower Model 3/Y deliveries. Other models saw an increase in deliveries. Total vehicle production dropped 14% in the quarter.Tesla postponed unveiling its robotaxi to October. Elon Musk expects robotaxi rides to begin next year. Tesla’s energy generation and storage segment saw doubled revenue in Q2. Service revenue rose 21%. The company plans to produce humanoid robots for sale and use in its factories. Demand for Tesla vehicles is decreasing due to concerns about charging options and vehicle driving ranges. Only 18% of U.S. adults are likely to buy an EV in the future. Tesla’s premium valuation may not be justified given slowing demand for EVs and competition from other companies like Alphabet’s Waymo. The Motley Fool analysts recommend staying on the sidelines with Tesla stock.



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