Tesla experiences second-quarter earnings Tuesday. Traders need a robotaxi replace

Tesla will report second-quarter earnings after the bell on Tuesday. The corporate’s car deliveries report on July 2 was higher than analysts feared, however nonetheless represented a decline from the earlier yr.

The earnings name on Tuesday will give buyers a greater understanding of what CEO Elon Musk and firm are doing to return to progress after reporting the most important income decline since 2012 throughout the first quarter.

Some institutional buyers will deal with the well being of Tesla’s automotive gross margins and the corporate’s working bills after it applied sweeping layoffs and provided value cuts and different incentives to drive EV gross sales.

Retail buyers who submitted questions by way of the Say Applied sciences platform forward of time are hoping for solutions in regards to the firm’s delayed plan to unveil its CyberCab, a “devoted robotaxi” and its progress on self-driving know-how generally.

In response to LSEG, as of Monday, analysts have been anticipating Tesla to report 62 cents per share in adjusted earnings on income of $24.77 billion for the interval ending June 30, 2024.

Retail buyers who submitted questions by way of the Say Applied sciences platform forward of time are hoping for solutions in regards to the firm’s delayed plan to unveil its CyberCab, a “devoted robotaxi” and its progress on self-driving know-how. They’re additionally searching for particulars about Tesla’s near-term priorities; the outlook for its quickly rising battery power storage enterprise; the standing of a brand new manufacturing facility it promised to construct in Monterrey, Mexico; and extra.

In gentle of Musk’s current endorsement of former President Donald Trump, and the CEO changing into a Republican megadonor this presidential election cycle, Tesla shareholders additionally submitted political questions forward of the decision.

One requested, “do you imagine a Trump / Vance admin will help Tesla and EVs? How assured are you based mostly in your conversations?” And one other requested, “How can Elon Musk endorse/fund a celebration that denies local weather change, but on the identical time Tesla’s mission assertion is derived on to struggle local weather change?”

Former president Trump has indicated that he would dispose of subsidies and different federal packages that assist patrons of, and producers of, totally electrical automobiles particularly however not different automakers.

Reuters reported final week that Musk’s political and polarizing statements have “sparked considerations about Tesla’s model, particularly in liberal states akin to California, which accounts for 10% of the corporate’s world deliveries.” California Tesla registrations fell to 52,211 automobiles throughout the second quarter, in accordance with information from the California New Automobile Sellers Affiliation.

Traders additionally submitted questions by way of Say Applied sciences about Tesla’s progress creating humanoid robotics that the corporate goals to place to work in its factories.

Musk claimed, throughout an annual shareholder assembly in June, that Tesla’s Optimus robots would be the catalyst for lifting the corporate’s market cap to an astronomical $25 trillion sometime. Musk additionally referred to as himself “pathologically optimistic” at that assembly.

Early Monday, Musk stated in a social media submit on X, Tesla’s Optimus humanoid robots shall be “genuinely helpful” and in “low manufacturing” for inner use at Tesla subsequent yr. He added they may very well be “hopefully,” in a better quantity manufacturing and accessible to be used by “different corporations in 2026.”

In April, Musk had instructed Tesla shareholders on a first-quarter earnings name Optimus can be in “restricted manufacturing within the pure manufacturing facility itself, doing helpful duties earlier than the top of this yr,” and Tesla “could possibly promote it externally by the top of subsequent yr.”

Tesla is a latecomer amongst tech corporations creating humanoid robots. Its Optimus rivals embrace Boston Dynamics, Agility Robotics, Unitree and others. Robotics corporations akin to Sanctuary, Apptronik, 1X, Fourier are additionally engaged on dexterous manipulation {hardware}, mimicking human fingers.

Musk has an extended historical past of promising buyers that futuristic Tesla services or products shall be prepared quickly, even when they don’t exist past a design idea.

For instance, the billionaire CEO promoted a next-generation Roadster idea at an occasion in November 2017 and once more in June 2018 in a sequence of tweets. He stated at the moment, “SpaceX choice bundle for brand spanking new Tesla Roadster will embrace ~10 small rocket thrusters organized seamlessly round automobile.” The engines would enhance pace and “even enable a Tesla to fly,” he wrote on the time. The refreshed Roadster remains to be not in manufacturing six years later, although Tesla has taken $250,000 deposits from prospects who wished one.

In one other instance, in 2015, Musk instructed shareholders that Tesla automobiles would obtain “full autonomy” inside three years. In 2016, Musk stated a Tesla automobile would be capable to make a cross-country drive with out requiring any human intervention earlier than the top of 2017. And in 2019, on a name with institutional buyers that might assist him increase greater than $2 billion, Musk stated Tesla would have 1 million robotaxi-ready automobiles on the highway in 2020, in a position to full 100 hours of driving work per week every, creating wealth for his or her house owners.

None of these issues have occurred but.

Tesla has not too long ago made huge adjustments to its driver help software program, marketed within the U.S. as Autopilot and FSD-S (Full Self Driving Supervised) garnering pleasure and favorable critiques amongst many followers and house owners.

Musk and different execs are anticipated to debate their remaining challenges to ship on these longstanding self-driving guarantees on Tuesday’s name.