Tesla Stock Drops 10% After Mixed Q2 Results; Affordable EVs and Robotaxi Reveal Set for 2025

Tesla's stock dropped 10% in early trading on Wednesday following its mixed second-quarter results. Despite the decline, the company confirmed its plan to introduce new, more affordable electric vehicles (EVs) in early 2025. CEO Elon Musk also announced that the robotaxi reveal is now scheduled for October 10, delayed from the initial August 8 date.

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Financial Performance for Q2

In the second quarter, Tesla reported revenue of $25.05 billion, slightly above the expected $24.63 billion and up from $24.93 billion last year. However, the company’s earnings per share (EPS) came in at $0.52, below the anticipated $0.60, with $1.8 billion in non-GAAP net income.

Production and Delivery Insights

Tesla delivered 443,956 vehicles globally in Q2, which was more than the 386,810 units delivered in Q1 but slightly below the forecast of 439,302 units. The company also noted that its growth rate for 2024 would be "notably lower" compared to 2023.

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Key production updates include:

• Cybertruck: Production has increased more than threefold since Q1, with expectations for profitability by the end of the year.

• Semi Truck: Production is scheduled to begin by the end of 2025.

Upcoming Affordable EVs and Robotaxi

Tesla is on track to launch new, affordable EV models in the first half of 2025. These vehicles will be built using both new and existing manufacturing technologies. Elon Musk revealed that the robotaxi, initially set for an August reveal, will now be showcased on October 10. The extra time will allow Tesla to add new features to the vehicle.

Wedbush analyst Dan Ives emphasized that the successful launch of the robotaxi is crucial for Tesla’s future valuation and its path toward a $1 trillion market cap, which will depend on the success of its AI and full self-driving (FSD) technologies.

Record Energy Storage Deployment

Tesla also achieved a notable milestone by deploying 9.4 gigawatt-hours (GWh) of battery storage in Q2, more than doubling the amount from Q1. Morgan Stanley's Adam Jonas described this as a "show stealer," noting it exceeded expectations and underscores Tesla's growing focus on energy storage.

Outlook and Market Reactions

Despite the recent stock drop, analysts remain positive about Tesla’s long-term prospects. The company’s increased vehicle deliveries and significant progress in energy storage are viewed as strong indicators of future success. The upcoming months are expected to be critical as Tesla continues to innovate and expand its offerings.

Also Read: Tesla Stock Drops as Profit Margins Fall, Emphasizing Need for Cheaper EVs