Tesla (TSLA) reported mixed results for the second quarter after markets closed on Tuesday, although the electric vehicle maker said it is on track to produce new vehicles, probably a cheaper EV, in the first half of 2025. Tesla also mentioned that its growth rate in 2024 would be “significantly lower” than what it achieved in 2023, something that went down badly with investors.
In this context, Tesla shares fell 11.5% on Wednesday, but in the premarket they exceeded 12%.
“Plans for new vehicles, including more affordable models, remain on track for production start in the first half of 2025. These vehicles will utilize aspects of the next-generation platform as well as aspects of our current platforms and will be capable of being produced on the same manufacturing lines as our current vehicle lineup,” Tesla said in its second-quarter earnings report.
Many analysts and industry observers believe that the debut and launch of a cheaper EV will drive the next phase of EV sales, something that even Tesla CEO, Elon Muskhas mentioned previously.
Robotaxi: what the market is looking at
On the earnings call, Musk said the company will unveil its robotaxi on Oct. 10, which was originally planned for Aug. 8. Musk said the extra time will allow Tesla to add “a couple more things” to the robotaxi before its unveiling.
Tesla said the robotaxi will feature the “boxless manufacturing strategy” it has previously promoted.
“Addressing the delay to Robotaxi Day and the new timeline will be important to hear on the conference call as we believe a key point for Tesla to reach a valuation of $1 trillion or more, and eventually higher in the next year, hinges on the AI/FSD story materializing on a monetization path over the next few years,” Wedbush analyst Dan Ives wrote in a note published Monday.
As for its other vehicles, Tesla said Cybertruck production more than tripled compared to the first quarter, and the vehicle is on track to “achieve profitability” by the end of the year. Tesla also mentioned that its Semi factory is on track to begin production in late 2025.
Tesla delivered 443,956 vehicles globally in the second quarter, beating Bloomberg’s estimate of 439,302 but down nearly 5% from last year. However, the second-quarter delivery total was a significant improvement from the 386,810 units delivered in the first quarter, raising concerns among some analysts about a potential free fall in demand for Tesla vehicles.
“We believe Tesla’s demand story has changed for the better after a difficult past 6-9 months, with stronger-than-expected Q2 deliveries earlier this month marking an important ‘inflection point’ in Tesla’s bull case looking into the second half of 2024/2025,” Ives said.
Source: Ambito
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