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.
Momentum Indicator for TSLA turns negative, indicating new downward trend
TSLA saw its Momentum Indicator move below the 0 level on June 30, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned negative. In of the 79 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for TSLA turned negative on June 25, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
TSLA moved below its 50-day moving average on July 03, 2025 date and that indicates a change from an upward trend to a downward trend.
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 .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TSLA's RSI Oscillator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for TSLA moved above the 200-day moving average on July 01, 2025. This could be a long-term bullish signal for the stock as the stock shifts 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 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
TSLA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 262 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 85, placing this stock slightly better than average.
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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 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 (8.905) is normal, around the industry mean (6.217). P/E Ratio (40.726) is within average values for comparable stocks, (17.826). Projected Growth (PEG Ratio) (2.067) is also within normal values, averaging (5.723). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (6.305) is also within normal values, averaging (79.562).
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a manufacturer of electric sports cars
Industry MotorVehicles
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