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Earnings News

Tesla Falls 14% in Trading After Q2 Fails to Meet Expectations


Tesla Inc (NASDAQ:TSLA) released its second-quarter results today. Here’s a look at how the company during the past three months:

Although the company fell short of expectations for the quarter, there were some positives for investors. Cash flow is a big issue for Tesla, and that was one area where there was a lot of improvement during the quarter. And further decreases in capital spending will only help that number improve. If Musk believes the company is still on track for deliveries, that means he must still believe big quarters are coming up in the latter half of the year. Whether that happens, however, is a whole other story. Nonetheless, the results look a lot worse than they appear to be and the strong sell-off we’re seeing may be unwarranted.

It’s been a tough year for Tesla as the stock has fallen 12% during the past 12 months. However, it has recovered from lows reached back in June as the stock is up 17% in just the last month.

Heading into earnings, Tesla was trading at 10 times its book value and twice its sales. Revenues for the trailing twelve months were $22.59 billion and $4.54B in Q1 with losses reaching $702 million. During the past 52 weeks, Tesla’s share price has climbed as high as $387.46 and as low as $176.99

DISCLAIMER: The author of this article does not hold any shares of the stock(s) mentioned in this article. This article is not a substitute for financial advice and this is not intended to persuade investors to buy or sell the stock(s) mentioned. Investors are recommended to seek professional investment advice or do their own analysis before making a stock purchase.