Tesla's Sales Grew, Though Investor Attention Remains on Artificial Intelligence

Tesla sold 480,126 vehicles in the second quarter, exceeding analyst forecasts by 18%. This represents the company's strongest sales growth rate since the third quarter of 2023.

This achievement is particularly significant for Tesla because approximately 70% of its revenue comes from the automotive business. The revenue generated from this segment enables the company to continue financing expensive projects related to artificial intelligence.

Analysts at Morgan Stanley and Barclays expect Tesla's earnings per share to exceed previous forecasts. Nevertheless, due to rising commodity costs, the profit margin from vehicle production may decline slightly.

Sales provide the company with additional financial resources for projects such as Robotaxi, the fully autonomous driving system FSD, and the humanoid robot Optimus. However, growth in vehicle sales alone will not be sufficient for Tesla's stock to appreciate.

The key question for investors remains whether the company can convert the capital invested in artificial intelligence into revenue. At this stage, the Robotaxi network is still small. In Austin, the company operates only 30 to 50 vehicles, while in other cities the numbers are even lower. Moreover, many vehicles still require human supervision.

Analysts have slightly raised Tesla's stock price target, though their assessment remains "neutral." According to Morgan Stanley, of the $417 target price, only $47 comes from the automotive business, with the remainder linked to the company's future technology projects.

Investors are now expecting Tesla to expand its Robotaxi fleet to 1,500 vehicles by year-end and to launch the service in Phoenix, Orlando, and Las Vegas.

Source: Investing.com