Tesla shares have been on a tear recently, surging 26 per cent in a week and by 75 per cent since April’s bottom, with the latest catalyst being better-than-expected delivery numbers.
Not that the numbers were good. Tesla delivered 444,000 cars in the second quarter, down from 466,000 a year ago. Global sales have fallen for two consecutive quarters, despite aggressive price cuts and low-interest financing plans.
Beating estimates of 439,000 is all very well, but Tesla’s numbers only look good compared with their own recent slump. Just a month ago, these numbers wouldn’t have met expectations.
As for earnings, analysts estimate earnings per share (EPS) of $2.55 in 2024 – down 25 per cent from 2023.
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Tesla reports earnings on July 23, but many commentators are more interested in its much-hyped robotaxi event on August 8th.
Bulls, like Wedbush’s Dan Ives, see Tesla as “the most undervalued AI play in the market”. Bears just see the most overvalued car maker in the market.
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