【Guess & Win】 Tesla's earnings announcement! "AI narrative" fails? Let's predict the closing price.

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.Robotaxi may be launched next year and there is a chance that FSD will enter the Chinese market this year. It will be launched in China, Europe, and other countries after the release of version 12.6.Moreover, Musk is very optimistic about Optimus and Dojo. He expects that by next year, Tesla's factory will have 'thousands' of Optimus humanoid robots performing various tasks, and Tesla is about to complete its largest artificial intelligence training cluster, Dojo, which Musk sees as a way to compete with Nvidia.

What impact does the US election have on Tesla? How does Musk respond?According to market sources, the prospect of Trump coming into power may have an impact on Tesla. Trump previously stated that he would end the 'electric car mandate' on his first day in office and instead promote energy. Musk said this may have a 'small impact' on Tesla, but a 'bigger blow' to its competitors. As a result, Tesla's plans to build a factory in Mexico are currently on hold, pending the outcome of the election.

How did Tesla's performance and stock price fare after the election?

Tesla's stock price has surged nearly 60% in the past three months, but the recent performance did not satisfy the market.

What impact does the US election have on Tesla? How does Musk respond?

Since Tesla's stock price fell to a temporary low of $138.803 on April 19th, the stock has surged by 67% in just three months as of the earnings call on July 23. However, Tesla's new business results in July disappointed Wall Street: Q2 automotive business revenue dropped by 7%, and earnings per share and net profit both plummeted by over 40% compared to the same period last year. The Tesla stock price has been fluctuating around $250 since the 5th, and the market is generally concerned about the future direction of its stock price. Will it continue to rise if the stock market stabilizes, or will it begin to decline? Let's see what the mooer has to say!

Mooer talks about opportunities.

After the Q2 earnings announcement, how do you see the future trend of Tesla? What is your strategy?

@Take your time to invest, Panda Junior：What do I need to pay attention to in option trading?Why can the high probability of TSLA's decline be determined through chip structure?》

Technically speaking, the reason is that there have been too many upward gaps before, and the current short-term increase is too large, showing signs of a head-and-shoulders pattern. Once it falls below the support level, the chips gathered above will create pressure. After two weeks of high-level consolidation, the number of chips at the bottom continues to decrease, with the majority of chips above and a gap in the middle, indicating that large investors are likely to be selling. Once news comes out, weak positions will directly become weak positions, and positive news is likely to be interpreted as positive news running out. Coupled with the current market conditions being unfavorable, a decline is also logical. It is highly probable that Tesla's trend after that will be a big drop followed by small rises until the major investors have finished selling.

@Short-seller：Two earnings, one flat and one slightly down.

The earnings themselves are not a problem, the issue is whether the institutions want to push you down or up. Tesla initially dropped slightly by 3 to 4 points, now it's within 2 points, considered mild. Not continuing to go crazy upwards, nor directly plummeting. The 230 level seems to have support. Once again proving that the US stocks are not chaotic, they won't just randomly crash without reason. Even if there is a crash, if it's excessive, it won't crash again, stopping at the right time.

This earnings period may repeat the pattern of the previous quarter, starting low and ending high.

@Toranaga In conclusion.

Tesla's performance is perfect. The unsupervised FSD, Double Ten press conference, the release of the year's initial model 2, landing in China at 12.5, and the energy storage business continues to double. Today's plunge is forcing out some speculative retail investors, true believers will see 675, mark my words.

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