Tesla reported its second quarter earnings after the bell on Monday. The electric carmaker crushed analysts’ expectations for the quarter, even as CEO Elon Musk warned against global chip shortage.
The company’s adjusted earnings for the quarter surged +230% from the year-ago quarter to $1.45, compared to the 98 cents per share expected by analysts polled by Refinitiv.
Revenue grew +98% year-over-year to a record $11.96 billion in the quarter, also exceeding analysts’ estimate of $11.30 billion.
Tesla’s overall automotive revenue came in at $10.21 billion, of which about 3.5% came from sales of regulatory credits. That’s a lower figure for credits than in any of the previous four quarters. Automotive gross margins were 28.4%, higher than in any of the last four quarters.
"Supply chain challenges, in particular global semiconductor shortages and port congestion, continued to be present in Q2," Tesla said.
"With global vehicle demand at record levels, component supply will have a strong influence on the rate of our delivery growth for the rest of this year," the company added. "We successfully launched Tesla Vision in Q2, which was mainly possible due to our ability to use data from over a million Tesla vehicles to source a large, diverse and accurate dataset. We continue to work hard to drive down costs and increase our rate of production to make electric vehicles accessible to as many people as possible. "
TSLA's Aroon Indicator triggered a bullish signal on May 26, 2023. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 295 similar instances where the Aroon Indicator showed a similar pattern. In of the 295 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on May 05, 2023. You may want to consider a long position or call options on TSLA as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on May 05, 2023. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
TSLA moved above its 50-day moving average on May 19, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TSLA crossed bullishly above the 50-day moving average on May 26, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 335 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TSLA broke above its upper Bollinger Band on May 22, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.739) is normal, around the industry mean (9.550). P/E Ratio (56.818) is within average values for comparable stocks, (95.948). Projected Growth (PEG Ratio) (2.136) is also within normal values, averaging (5.867). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.041). P/S Ratio (7.800) is also within normal values, averaging (72.176).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows