Here's what Wall Street is looking for in Tesla's 2nd-quarter earnings

Tesla delivered a record 466,000 vehicles in the second quarter,

well ahead of Wall Street estimates of 447,000. The strong deliveries should translate to solid revenues for Tesla. "As we have discussed the aggressive price cuts were a near-term pain for long-term gain strategic move for Tesla to put an iron fence around its installed base and gain new EV customers by cutting prices in a choppy macro backdrop. So far this has been a home run strategy," Ives said.

The consensus on Wall Street is for Tesla to generate $24.5 billion in revenue for the quarter, along with earnings per share of $0.82, according to data from Yahoo Finance. The real question for Tesla investors is how much of the company's profit margin was sacrificed to sell so many vehicles via price cuts.

Ives expects Tesla's gross margin to drop to 17.5% in the second quarter, which would be a decline from 19.3% in prior quarter and its lowest level since 2019. But after that, he expects margins to rebound back to 20% heading into 2024 as demand for its vehicles should remain strong.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bulls and bears are locked in a battle for Wall Street | CNN BusinessBulls and bears have always engaged in battle on Wall Street. But the divide between so-called “bulls” and “bears” — optimistic investors who forecast rising stock prices and pessimistic investors who expect declining stock prices — is growing wider.
Source: CNN - 🏆 4. / 95 Read more »

Netflix Earnings Preview: Bullish Wall Street Expects Progress on Password-Sharing Crackdown, Ad TierMacquarie speaks of a 'potentially momentous' quarterly update, while peers predict signs of accelerating growth in the second half of the year.
Source: THR - 🏆 411. / 53 Read more »

Asian stocks drop as China growth worries overshadow Wall Street gainsShares were mostly lower Tuesday in Asia as optimism over a Wall Street rally was countered by worries about the Chinese economy.
Source: MarketWatch - 🏆 3. / 97 Read more »

Bank of America is about to report earnings — here's what Wall Street expectsWhile analysts expected Bank of America to be one of the top beneficiaries of rising interest rates, it hasn't played out that way.
Source: CNBC - 🏆 12. / 72 Read more »