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Key Concepts:

• Tesla Q2 2024 Earnings Projections: Expected decline in EPS and revenue.
• Year-over-Year Decline: Comparison of Q2 2024 performance with Q2 2023.
• Operating Profit: Profit after deducting operating expenses.
• Core Automotive Business: Tesla's primary business segment.
• Magnificent 7 Stocks: Group of seven leading technology companies.
• Robo Taxi Driverless Vehicle Service: Tesla's autonomous vehicle service.

Tesla's Q2 2024 Earnings Projections

Analysts anticipate a double-digit drop in both Tesla's top and bottom lines when the company releases its second-quarter earnings. The report is scheduled for after the market closes on Wednesday. The projection follows a reported historic decline in quarterly deliveries, which occurred in the wake of Elon Musk's association with Donald Trump and their subsequent disagreement.

Financial Expectations

• Earnings Per Share (EPS): Tesla is expected to report an EPS of 40 cents for Q2.
• Revenue: Projected revenue is 22.28 billion for the second quarter.
• Year-over-Year Decline: According to Faxet, this would represent a 23% year-over-year decline in EPS and a 13% decline in revenue.

Profitability Estimates

• Operating Profit: Economists project a 31% year-over-year decline in Tesla's operating profit, estimating it at 1.1 billion.
• Core Automotive Business: A 16.5% plunge is expected for Tesla's core automotive business.

Stock Performance and Musk's Involvement

• Stock Surge: Tesla's shares had surged in recent months following the end of Elon Musk's role as a special government employee with the Trump administration.
• Recent Decline: However, the stock declined by more than 4% over the last month.
• Musk-Trump Fallout: Musk's separation from President Donald Trump and the ensuing fallout continued in recent weeks due to disagreements over Trump's spending bill.

Potential Positive Factors

Analysts are somewhat hopeful, expressing optimism due to Tesla's limited launch of its anticipated robo taxi driverless vehicle service in Austin, Texas, in June.

Comparison to Magnificent 7 and S&P 500

• Magnificent 7: Tesla and Alphabet are the first of the Magnificent 7 stocks to release their Q2 reports, preceding reports from Meta, Microsoft, Amazon, and Apple. Nvidia will be the last to report.
• S&P 500: Earnings from the world's largest stocks are expected to be in line with or better than the better-than-expected reports by companies listed under the S&P 500 in recent weeks.

Conclusion

The summary paints a picture of a challenging second quarter for Tesla, with anticipated declines in earnings, revenue, and profitability. This is attributed to factors including a decline in quarterly deliveries and the fallout from Elon Musk's political involvement. Despite these concerns, analysts express some hope due to the launch of Tesla's robo taxi service, and the overall earnings from the world's largest stocks are expected to be in line with or better than the better-than-expected reports by companies listed under the S&P 500 in recent weeks. The Q2 earnings report will be crucial in assessing Tesla's performance and future trajectory.