Tesla shares take a hit despite strong Q2: This week in EVs
Investing.com — Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: Strong profits can’t keep Tesla from dropping; housecleaning at Ford; and Delaware signs a new law.
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Tesla (NASDAQ:TSLA) held its Q2 earnings call this week, where the electric vehicle giant reported strong results with profits growing by 20% to $0.91 per share, surpassing the Street's estimate of $0.79. Revenue for the quarter also increased by 47% to $24.93 billion, beating the consensus estimate of $24.29B.
Tesla's CEO, Elon Musk, announced record vehicle production, deliveries, and revenue during the quarter, despite facing challenges such as high interest rates and macro uncertainty.
During the call, the billionaire CEO expressed confidence in the long-term potential of autonomy, stating that it will drive volume «through the ceiling» and that the company's future robotaxi products will have significant demand.
He also highlighted the importance of artificial intelligence (AI) and the Dojo supercomputer in training Tesla's Full Self-Driving (FSD) program, aiming to achieve a capability that is 10 to 100 times better than human driving. Musk believes that once regulators approve (FSD) and the value of Tesla's fleet increases, it will be a significant step change in asset value.
Musk also hinted that Tesla was in early discussions with a “Major OEM” (original equipment manufacturer) to potentially license their (FSD) technology.
“We’re not trying to keep this to ourselves,” said Musk about the company’s FSD program.
After the call, shares fell by more than 9% as the company disclosed its intention to implement upgrades that they said could lead to a
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