Morning Brief anchor Julie Hyman breaks down the latest market news for July 24, 2025. Tesla shares are falling after issuing a disappointing Q2 report.
Tesla's (NASDAQ: TSLA) second-quarter earnings report has revealed a broad decline in performance and global market share.
Tesla shares plunged as much as 10% in early trading Thursday as investors digested another dismal quarter of car sales – and CEO Elon Musk's admission that slump may not end anytime soon.
Recent earnings beat revenue estimates, with improving gross margins and reduced reliance on tax credits, supporting future profitability and growth prospects. Tesla's ecosystem, data advantage, and innovation in robotaxis and humanoid robots could unlock massive new revenue streams, echoing Apple's iPhone moment. Risks include competition, political factors, FSD uncertainty, and other variables, but my 2030 bullish case price target range remains $2,500–$3,000.
Investors in Tesla can't seem to catch a break. Yesterday, Elon Musk's electric vehicle company reported its Q2 2025 results—and they weren't good.
Analysts were mostly upbeat about Tesla's earnings, even as investors worried about CEO Elon Musk's comments about potential “rough” quarters ahead.
Tesla, Inc.'s core auto business is stagnating, with negative YoY growth and flat revenue per share since mid-2023, undermining its trillion-dollar valuation. Aspirational segments like autonomous driving and humanoid robots are highly competitive, with no clear TSLA advantage. TSLA's sky-high P/E and reliance on optimistic forecasts are unsustainable; future earnings reports are unlikely to justify the current valuation.
Tesla's Q2 deliveries fell 13% Y/Y in Q2, but I expect a rebound as refreshed Model Y deliveries ramp up throughout the year. Despite declining delivery volumes, Tesla beat revenue expectations and maintained solid gross margins. In fact, gross margins increased 0.9 PP quarter-over-quarter.
Tesla's Q2 2025 report showed declining revenue and profits, with rising CAPEX. Elon Musk sounded tired, offered few details on Optimus, and emphasized robo-taxis as Tesla's future on the Q2 call. Semi, Cybertruck, and Energy segments saw reduced focus, and weak year-over-year performance in energy was surprising.
Tesla Inc.'s core car-making business is facing a deteriorating outlook, providing a major test of Chief Executive Officer Elon Musk's ability to lift the stock price with his vision of a self-driving future.
Tesla is a bold, long-term bet on a fully automated future, leveraging its AI-driven software and cutting-edge industrial production - both enablers of a future where humans become almost irrelevant. Despite Q2 challenges, I think Tesla's investments in AI and robotics solidify its role as a trailblazing leader in automation, with no direct US-based competitors. Tesla's vertically integrated approach and role in Musk's automation ecosystem give it a shot at a $10 trillion valuation if its vision materializes.
Ex-Tesla Board Member Steve Westly weighs in on Elon Musk's tough quarter and what it means for the EV giant.