Key points:
Tesla (Symbol: TSLA) is set to tumble by 8% as the electric vehicle giant reported disappointing second-quarter financial results.
SEE: Tesla stock drops as Q2 profits half, as observed on the VT Markets app.
Despite CEO Elon Musk’s ambitious forecast of a $5 trillion valuation through the deployment of a vast fleet of robotaxis, market reaction showed caution against statements made by the CEO.
The profitability of Tesla suffered a 45% decline, marking the second consecutive quarterly drop. The company posted earnings of 52 cents per share, missing the anticipated 61 cents and falling well below the 91 cents reported a year ago.
Net income for the quarter was $1.47 billion, underperforming Wall Street’s consensus estimate of $1.9 billion. On a brighter note, revenue rose 2% to $25.5 billion, surpassing the forecast of $24.54 billion.
In the earnings announcement, Elon Musk expressed optimism about Tesla’s future, highlighting the company’s plan to launch its robotaxis in October, despite a two-month delay.
Musk’s bold prediction of Tesla reaching a $5 trillion valuation is based on the anticipated success of this autonomous fleet. However, this optimistic outlook failed to reassure the market, leading to the significant drop in Tesla’s stock price.
The current dip in Tesla’s stock presents potential trading opportunities. The recent downward trend suggests that there may be further volatility ahead, particularly as the market digests the company’s financial performance and future projections.
Traders should keep an eye on key developments such as the rollout of the robotaxi fleet and upcoming earnings reports, while exercising risk management with good discipline. Additionally, market reactions to broader economic indicators and industry trends will also play a crucial role in shaping Tesla’s stock trajectory.
Education
Company
FAQ
Promotion
Risk Warning: Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.
The information on this website is general and doesn’t account for your individual goals, financial situation, or needs. VT Markets cannot be held liable for the relevance, accuracy, timeliness, or completeness of any website information.
Our services and information on this website are not provided to residents of certain countries, including the United States, Singapore, Russia, and jurisdictions listed on the FATF and global sanctions lists. They are not intended for distribution or use in any location where such distribution or use would contravene local law or regulation.
VT Markets is a brand name with multiple entities authorised and registered in various jurisdictions.
· VT Global Pty Ltd is authorised and regulated by the Australian Securities & Investments Commission (ASIC) under licence number 516246.
· VT Global is not an issuer or market maker of derivatives and is only allowed to provide services to wholesale clients.
· VT Markets (Pty) Ltd is an authorised Financial Service Provider (FSP) registered and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 50865.
· VT Markets Limited is an investment dealer authorised and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269.
· VTMarkets Ltd, registered in the Republic of Cyprus with registration number HE436466 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.
Copyright © 2024 VT Markets.