Tesla Earnings Preview
Tesla (TSLA) is the most notable company among the firms posting quarterly earnings this week. Boycotts that plagued the firm peaked in the first quarter. CEO Elon Musk’s involvement in DOGE hurt the brand at the time.
Musk’s exit from DOGE and the fallout with the U.S. President might convince investors to buy TSLA stock again. Even weak second-quarter results will not likely cause a sell-off.
In Q2, expect Tesla to post revenue of $22.4 billion, or $0.41 a share. Throughout the quarter, analysts lowered their EPS expectations, setting up an easy earnings beat for Tesla.
AI-based trading algorithms will likely pick out buzzwords that would lift TSLA stock. The company already said that Tesla systems will have the AI, Grok.
While Uber (UBER) announced a $300 million investment in Lucid (LCID), Tesla might offer its revenue forecast for its Cybercab. Plans to expand the service might help TSLA stock.
The Optimus V3 humanoid robot has a generative AI chatbot. This expands the use cases for voice-driven services, autonomous learning, and physical tasks. The commentary might distract fundamental investors from the weakening profitability in the EV market.
Last week, Lucid stock added nearly one-third in value, squeezing the short-sellers who hold a 33% short float. Rivian Automotive (RIVN) added 5%. The dramatic gains in those stocks will renew speculative trading interest in TSLA stock this week.
