South Korean battery maker LG Energy Solution has signed a $4.3 billion contract to supply lithium iron phosphate batteries to Tesla , a person familiar with the matter told Reuters.
Why Jonathan Rose is shorting tech stocks
Tesla, Inc.'s financials are deteriorating, with declining revenues, margins, and free cash flow, signaling the company is no longer a growth story. Inventory build-up, weak Cybertruck demand, and questionable future mass-market vehicle prospects highlight operational and competitive challenges. AI and robotaxi ambitions face technological, regulatory, and competitive headwinds, while CEO Elon Musk's focus and political risks further cloud the outlook.
Tesla, Inc.'s Q2 2025 results show steep declines in deliveries, revenue, margins, and free cash flow, challenging the bullish investment thesis. Competition is intensifying, especially from BYD Company in Europe and China, while Tesla's production lags behind its capacity and market share erodes. TSLA stock valuation remains extremely lofty, with high P/E and P/FCF multiples unjustified by current business performance or cash flow trends.
Tesla, Inc. reported a disastrous Q2 earnings report, and a couple of days after a $16.5B deal with Samsung for A16 chips used in Robotaxi and Optimus. The fundamentals all point to more bad news in Q3 for the auto business, with a deepening demand issue made worse by loss of EV tax credits. We're betting on a reversal on Tesla edging closer to its status as an autonomous leader.
After soaring in 2023 and 2024, shares of Tesla (NASDAQ:TSLA) were battered throughout Q1 2025.
Alphabet Inc.'s (NASDAQ: GOOGL) self-driving car company Waymo is moving into Dallas.
A recent disappointing earnings report for Tesla (NASDAQ:TSLA) caused shares to drop substantially.
Tesla's Q2 2025 was disastrous: revenue, deliveries, and profits all plunged, with margins collapsing and regulatory credit sales vanishing. The core automotive business is in decline, with price cuts failing to spark demand and cash flow nearly evaporating despite a large cash pile. Energy and charging segments showed some growth, but these bright spots are too small to offset the auto business's severe weakness.
Samsung Electronics (KRX:005930) has signed a $16.5 billion agreement to manufacture artificial intelligence chips for Tesla Inc (NASDAQ:TSLA), with production set to take place at the Korean giant's new facility in Taylor, Texas. The deal, confirmed by Elon Musk on his social media platform, is for Tesla's next-generation AI6 chips and runs until the end of 2033.
Shares in Samsung Electronics fell 1% on Tuesday after the South Korean technology company staged a powerful rally in the previous session on news of a $16.5 billion deal to supply chips to Tesla.
Waymo, the leading U.S. robotaxi operator, plans to launch the autonomous ride service in Dallas next year, its second market in Texas, where it's partnering with Avis to keep its growing fleet of electric vehicles in service. The Alphabet Inc. unit's steady expansion pace draws a sharp contrast with Tesla, which remains in test mode despite CEO Elon Musk's continued claims of its autonomous tech prowess.