Has there ever been another stock that has been so volatile? Tesla (Nasdaq: TSLA) recently?
After a surge in investor optimism following Tesla’s latest delivery numbers, bears prevailed on Wednesday. Fear-mongering media reports sparked a sudden mood change, sending Tesla shares down more than 8% during Wednesday’s trading session.
It appears that the introduction of major products has been postponed
Before the market opened, Bloomberg published a story that Tesla was delaying the launch of its long-awaited robotaxi vehicle, citing anonymous “people familiar with the decision” to allow the robotaxi team to rework certain elements of the vehicle and build more prototypes.
Tesla CEO Elon Musk had set a launch date for the robotaxi fleet as Thursday, August 8. Bloomberg’s sources say the launch will be delayed by about two months.
Investors have been understandably excited about robotaxis in the past — such vehicles could provide a new revenue stream for Tesla if managed effectively — so the delays are cause for concern.
of Electric Vehicles (EV) The manufacturer has yet to officially comment on the Bloomberg report.
Second quarter earnings announcement coming soon
While the robotaxi news has certainly impacted sentiment around Tesla shares, the main event to watch this month will be the company’s second-quarter earnings, which are due to be released on Tuesday, July 23rd and will likely provide a clearer picture of whether the company is showing true improvement in its business and fundamentals, or at least not any major deterioration.
Analysts tracking Tesla stock, on average, expect revenue to decline slightly (2%) year over year to just over $24 billion. The bottom line decline should be more dramatic, as these analysts are collectively forecasting earnings per share of $0.61, compared to $0.91 a year ago.
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Eric Volkmann The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a position in and recommends Tesla. The Motley Fool Disclosure Policy.
Why Tesla shares fell 8% on Wednesday Originally published on The Motley Fool
