Forums

Tesla’s Q2 Earnings: Can Record Deliveries Drive Profits?

Tesla’s Q2 Earnings: Can Record Deliveries Drive Profits?

Tesla’s Q2 Earnings: Can Record Deliveries Drive Profits?

WRITTEN BY MOHIT OBEROI, CFA

Tesla’s Q2 earnings are expected after the markets closes on Wednesday. Tesla’s (TSLA) announcements tend to generate a lot of fanfare. Apart from the company’s second-quarter earnings and other business updates, CEO Elon Musk’s tweets keep investors on their toes. Tesla has outperformed mainstream automakers like Ford (F) over the last few years. So far, 2019 is turning out to be a tough year for the stock. Tesla has lost 23.2% in 2019, while Ford has seen an upwards price action of 37.4% this year. NIO (NIO) has lost almost 47% year-to-date.

Full article here: https://marketrealist.com/2019/07/what-could-drive-teslas-q2-earnings/

rglossin | July 24, 2019

Tesla posts loss of $1.12 per share, vs. expected loss of 40 cents

andy.connor.e | July 24, 2019

whelp i guess they're screwed

beachlife | July 24, 2019

They did better than Ford.

https://marketrealist.com/2019/07/ford-and-tesla-stocks-q2-earnings/

Personally cant wait till we see a Tesla Pickup.

efuseakay | July 25, 2019

TSLA down 37 points. Ouch.

Cue the “Its time to buy!” cultists.

If they can’t turn a profit with “record number of cars sold”, they’re in trouble. And with JB jumping ship... well. Ouch.

andy.connor.e | July 25, 2019

Ah yes, another quarter, another "Tesla is screwed" moment. Dont worry this nonsense lasts a week or 2 and then people forget, and then the china factory will be up and running and then everyone will find something else to point out.

efuseakay | July 25, 2019

Or. “Another quarter and Tesla will finally turn a profit for good because of xyz that never happens! Just you wait!!!”

andy.connor.e | July 25, 2019

Ya i mean i didnt say that, but thats basically what you're saying. Every quarter they dont turn a profit, Just you wait!!! They'll fail! I promise!

johncrab | July 25, 2019

Only when any company reports does the financial
media jump back to Adam Smith’s world of balance sheets. Tesla has created its own economic niche so judging it by 19thC economics is just silly. They need to stop losing money. They need to turn a profit. Sure, but if we applied Adam Smith, Tesla would have been a memory in 2013. When entire governments prop up their economies with debt which can never be paid off, what’s the difference if a reasonably sound company does it? Even if Tesla fails there is too much infrastructure and installed base just to let it all go away. Worst case, a consortium of companies or one of the behemoth tech companies will buy it, restructure and move in a different direction. Best case, they move into the black, pay down debt and restructure themselves.

TabascoGuy | July 25, 2019

Reinvesting every penny of profit back into the massive growth that Tesla must do is not "burning cash" or "losing money".

andy.connor.e | July 25, 2019

@Tobasco

I've been trying to explain that to people here for what, 3 years now? Not sure if im alone on that.

carlk | July 25, 2019

You can't even compare Ford to Tesla. Ford and most others are losing market shares. Tesla is gaining market share at a fast pace. I have to say it's money well spent.

As for "burning" cash the analogy I like to use is you spend $1 million to build a million dollar house. You're not "burning" or "losing" even one cent. You will own a million dollar house and if you do things right multi-million dollar house.

DanFoster1 | July 25, 2019

@TabascoGuy, @andy.connor.e, exactly. Don’t waste your time, people are morons, analysts are scum, media is worse. Tesla spends huge amounts of money on the future, every one be like, “They’re losing money!”; “They can’t make money on their cars!” Dumbest shit ever. They did the same crap to Apple when it was trading around $12, before it split several times and made so many billions…

TabascoGuy | July 26, 2019

@andy, You are not alone.

@carlk, A toast to the "multi-million dollar house" Tesla is building. Cheers!

@Dan, Amen.

Tesla-David | July 26, 2019

Watch this "Now You Know" segment from Jesse and Zac on the Q2 Earnings cal. It will set your minds at rest that everything is fine, in fact more than fine in Tesla World.

https://www.youtube.com/watch?v=TLFftpLo07c

carlk | July 27, 2019

Everyone is quite about the ~$600 million free cash flow. Those are the same people who cry "cash burn" when there were large negative cash flow because of investment. Elon also said free cash flow likely will stay positive unless in a quarter that have some special events. From numbers below in the report the worst, likely because of the model 3 ramp up, has been over since mid-2018. If Tesla could keep the free cash flow this way profit will follow.

https://ycharts.com/companies/TSLA/free_cash_flow