Tesla Stock Falls Over 6% Pre-Market After Q2 Miss — Elon Musk Warns Of 'Rough Few Quarters' Ahead
Tesla Inc. shares fell over 6% in pre-market trading after reporting a Q2 revenue of $22.5 billion, a 12% year-over-year decline. CEO Elon Musk warned of a "rough few quarters" ahead due to the end of EV incentives and tariff pressures. The announcement of a more affordable Model Y trim has raised concerns about potential cannibalization within Tesla's lineup. CFO Vaibhav Taneja urged customers to purchase vehicles now to avoid inventory shortages. Despite strong growth metrics, Tesla's value remains poor.
Tesla Inc. TSLA is down by over 6% in pre-market trading following the company's Q2 earnings call with investors.
Check out the current price of TSLA stock here.
Tesla shares fell after the company reported a revenue of $22.5 billion in Q2, a 12% YoY decline. The decline also follows dwindling sales figures in multiple markets.
CEO Elon Musk also shared that Tesla could be in for a "rough few quarters" as the Trump administration ends EV incentives and tariff pressures cause uncertainty for the company.
Tesla's announcement of an affordable trim of the Model Y has also disappointed experts, who maintain that the move could lead to cannibalization within the company's lineup.
EV incentives getting axed could also lead to shortages in Tesla's U.S. inventory, as the company's CFO, Vaibhav Taneja, urged customers to buy more vehicles now or face delays during the earnings call.
Tesla offers Satisfactory Momentum and Quality, while scoring well on the Growth metric, but offering poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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