Tesla (TSLA, $860.31) tops Q2 earnings expectations
Tesla crushed analysts’ expectations for its second quarter earnings. However, soaring input costs attenuated profit margins of the electric vehicle maker.
The company’s adjusted earnings for the three months ending in June rose +56.5% from the year-ago quarter to $2.27 per share, well above the Street expectations of $1.86 per share.
Revenues climbed +41% from the year-ago period to $16.94 billion, but fell short of analysts' forecasts of $17.2 billion.
Tela’s automotive margins came in at 27.9%, decreasing by 500 basis point from last year. Analayst had expected 28.2%. Input cost pressures and expenses linked to the ramp-up of new factories in Austin and Berlin weighed on margins. Excluding the effect of emissions credit sales, automotive margins were 26.2%, notwithstanding the +5% rise in the average selling price of a Tesla vehicle.
Raw materials prices and labor costs have been on the rise over the past year. Nickel, which is a key material in electric vehicle manufacturing is around +20% higher, at $21,200 per ton on the London Metals Exchange. Battery-grade lithium carbonate prices have increased +60% from early 2021 levels.
The quarter ending June saw a -17.7% decrease in Tesla deliveries from the previous period to 254,695 units. The company faced chip shortages, supply chain disruptions, and a 22-day shutdown at its gigafactory in Shanghai during the quarter.
In April, Tesla had mentioned that inflation’s effect on costs has been a factor behind adjustments in our product pricing, despite its efforts at reducing manufacturing costs where possible. The company has since implemented layoffs in California and raised prices for its Model S and Model Y sedans.
TSLA in upward trend: 10-day moving average broke above 50-day moving average on May 26, 2023
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 11 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
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.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 295 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 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 30, 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.
Fundamental Analysis (Ratings)
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 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 (13.459) is normal, around the industry mean (9.571). P/E Ratio (59.880) is within average values for comparable stocks, (95.933). Projected Growth (PEG Ratio) (2.255) is also within normal values, averaging (5.857). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (8.237) is also within normal values, averaging (74.768).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued 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.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of electric sports cars
Industry MotorVehicles
TSLA and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSLA has been loosely correlated with RIVN. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if TSLA jumps, then RIVN could also see price increases.
| Ticker / NAME | Correlation To TSLA | 1D Price Change % | ||
|---|---|---|---|---|
| TSLA | 100% | +1.38% | ||
| RIVN - TSLA | 64% Loosely correlated | -0.94% | ||
| LCID - TSLA | 62% Loosely correlated | +0.45% | ||
| RACE - TSLA | 57% Loosely correlated | -0.24% | ||
| GM - TSLA | 56% Loosely correlated | -2.85% | ||
| NIO - TSLA | 51% Loosely correlated | +1.62% | ||
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