Tesla's stock took a hit on Wednesday, dropping as much as 13% after the company reported weaker-than-expected second-quarter earnings. This decline also affected other electric vehicle (EV) stocks, with Rivian and Lucid also experiencing losses.
The disappointing results were attributed to Tesla's adjusted earnings per share of 52 cents, missing the consensus estimate of 60 cents. CEO Elon Musk also announced the postponement of the much-anticipated Robotaxi event, a setback for the company.
This news led to a general downturn in the EV sector, with other companies like Lucid, Rivian, Polestar, and Nikola also seeing declines in their stock prices. The EV industry has been facing challenges, with shifting consumer demand towards cheaper hybrid models impacting sales.
Despite the negative trend, some analysts remain optimistic about Tesla's long-term growth prospects. Gene Munster of Deepwater Asset Management highlighted bullish catalysts such as Tesla's plans for full self-driving cars and humanoid robots. Wedbush Securities' Dan Ives also expressed optimism, expecting the upcoming Robotaxi day to drive growth for the company.
On the other hand, some analysts have adjusted their price targets for Tesla following the earnings report. Cantor Fitzgerald analyst Andres Sheppard downgraded the stock to neutral, while also raising the price target to $245 based on record growth in Tesla's energy storage and deployment segment.
Overall, Tesla's recent performance has sparked a mix of reactions on Wall Street, with some investors betting on the company's long-term potential despite the short-term challenges it faces. The stock market's response to Tesla's second-quarter earnings reflects the ongoing uncertainty surrounding the future of the EV industry.