After the US stock market closed on July 23, Tesla announced its earnings for Q2 2024!The performance of Tesla this time is mixed. Although it benefited from the growth of its energy business, with total revenue exceeding expectations by 2% to $25.5 billion; sales of its main business, automobiles, continue to decline, with profits falling by a double-digit percentage and falling far below expectations, along with the previously scheduled Robotaxi launch on August 8 being delayed to October.Although the benefit comes from the growth of the energy business, the total revenue increased by 2% beyond expectations, reaching $25.5 billion. However, the sales of the main automotive business continued to decline, with profits decreasing by double digits and much worse than expected. In addition, the Robotaxi originally planned to be released on August 8 was postponed to October.On July 24th, Tesla's stock fell more than 8% before the US market opened, eventually closing down 12.33%.
Did the 'AI narrative' fail? Will the market still buy into the narrative?
Before this earnings announcement, it was generally believed on Wall Street that the decline in Tesla's electric vehicle business was a consensus, and attention turned to Tesla's plans and narratives in the 'AI' sector. Musk's high expectations and plans for robotaxi, self-driving cars, and robotic optimism had previously prompted the stock price to rise, which also confirmed this point.
But with the sharp decline in Tesla's performance this time before the market opened, it instead forced investors to consider whether the 'AI' narrative really 'failed'?Instead, they re-examined Tesla's fundamentals.
Following the decline, Musk tries to salvage the situation by 'painting a bigger picture' again.
In this earnings conference call, Musk once again laid out the future blueprint for 'automation'. He emphasized that 'automation' is Tesla's long-term value, and Tesla will solve the problem of autonomous driving. If you don't believe it, then sell your stocks."The long-term value of Tesla lies in automation. Tesla will solve the problem of autonomous driving. If you don't believe it, then sell your stocks."
Musk predicts that.Robot...