What the data shows is What caught my attention is Investors knew electric vehicle (EV) sales have been slumping for Tesla (TSLA 2. Conversely, The EV leader announced a 13.
5% year-over-year drop in second-quarter deries on July 2. On the other hand, On the other hand, Yet the stock is tanking today after Tesla reported its full second-quarter financial today.
S dropped as much as 10% before paring some of that loss (noteworthy indeed). As of midday trading, Tesla stock was still down by 9% after what was considered a disappointing report.
Tesla bulls still might have a reason to buy the dip, however. Image source: Tesla.
Furthermore, The robotaxi rollout is on track While investors already knew deries were down 13 (an important development), in today's market environment.
5%, there was further disappointment in seeing automotive revenue decline by 16% versus the year-ago period (an important development).
That shows increasing pressure on vehicle pricing, given the current landscape. Gross fit margin declined year over year as a result.
Additionally, In contrast, That wasn't the end of the bad news, either. Free cash flow was just $100 million in the second quarter, considering recent developments.
Even its previously fast-growing energy generation and storage reported a 7. 5% revenue drop versus last year.
CEO Elon Musk focused on the future in the earnings conference call, and Tesla bulls bably d what he said.
Musk stated: "I think we will bably have autonomous ride-hailing in bably half the population of the US by the end of the year. At the same time, That's at least our goal, subject to regulatory apvals.
I think we will nically be able to do it. Nevertheless, " Pump the brakes on Tesla Tesla's robotaxi is what Tesla bulls are counting on.
At the same time, Some analysts think autonomous ride-hailing services could become a trillion-dollar.
While there could be much competition for that market, Tesla could become a major player, with voluminous amounts of data from its EVs already on the road.
Elon Musk has made bold predictions that haven't always materialized, in this volatile climate.
Meanwhile, Risk-tolerant investors might want to buy today's dip with a per allocation based on that potential robotaxi market.
But it shouldn't come as a surprise if the predicted rollout of Tesla robotaxis isn't as big or as fast as Musk predicted yesterday.