Home NewsStock Market News Tesla’s Q2 earnings report failed to meet analysts’ expectations, and the stock price rose more than 10% in the bad session | Anue Juheng-US Stock Radar

Tesla’s Q2 earnings report failed to meet analysts’ expectations, and the stock price rose more than 10% in the bad session | Anue Juheng-US Stock Radar

by WOOWinvest
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Tesla’s Q2 earnings report failed to meet analysts’ expectations, and the stock price rose more than 10% in the bad session | Anue Juheng-US Stock Radar


Previously, Wall Street analysts were worried that Tesla’s earnings report may not perform well, but after the earnings report was released, it was not as bad as expected, and the outlook was also good, inspiring Tesla’s stock price to rise more than 10% in intraday trading on Thursday (21st).

Before the time of writing, Tesla (TSLA-US) shares rose 10.8% during the session, and the share price was tentatively reported at $817.33.

According to Refinitiv data, Tesla’s second-quarter revenue rose 42% year-on-year to $16.93 billion, but still fell short of expectations of $17.1 billion, but adjusted earnings per share were reported at $2.27, an increase of 57% year-on-year, far higher than the expected $1.81.

Although Tesla’s revenue rose last quarter, auto profits fell slightly due to inflation and increased competition for electric vehicle components. The gross profit margin of the car was 27.9%, compared with 28.4% in the same period last year.

Some analysts said the company’s outlook was better than expected, despite the production problems facing Tesla’s factories in Berlin, Texas and Shanghai.

Wedbush analysts Dan Ives and John Katsingris wrote in a report that Tesla reported better-than-expected earnings this quarter, and the company’s second-half health forecast looks set to come true.

Two analysts maintained an “outperform” rating on Tesla stock and maintained a price target of $1,000 a share. Analysts at RBC and Jefferies set Tesla stock price targets at $1,100 and $1,050 a share, respectively.

On the other hand, Wall Street analysts applauded Tesla’s move to sell 75% of its bitcoin holdings in bitcoin’s worst quarter. Selling bitcoin last quarter brought the company $936 million in cash flow while avoiding losses on its bitcoin investment.

Still, analysts still don’t expect major volatility in Tesla’s stock price in the near term. Ahead of Tesla’s earnings report, Morgan Stanley analyst Adam Jonas wrote in a report that “before Tesla reports a more significant profit gap, or see new growth/earnings at Gigafactories in Germany vs. the U.S.” Before the signs, it’s hard to see what really shakes the consensus on Tesla.

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