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Vehicle deliveries have fallen year after year, but energy storage remains a bright spot with healthy margins.
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Management continues to run the story to software, autonomy and energy.
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The appreciation of the stock is good for considerable progress in the direction of his ambitious goals for autonomous cars and robotics.
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Tesla (Nasdaq: TSLA) Reports the results next month and investors will look forward to evidence that the company stabilizes after a considerable withdrawal of the sales trends of vehicles. The maker (EV) maker (EV) of Electric Vehicle sells premium cars, a growing series of energy storage products and paid software for his vehicles, for example the full software from Tesla (supervised) (guided) software. The mix of hardware and software, combined with continuous innovation, makes the story unusually dynamic – and that is why every three -month updates have extra weight.
Shares have returned this year from their lows, which means that the bull shop is now less dependent on the growth in the short term and more of the question of whether Tesla can expand the margins through software and energy while investing in autonomy and robotics. After all, these are the things that the needle will really move for Tesla in the long term. So that is the frame for the upcoming report: figures are important, but the destination is more important.
Financial results at Tesla are disappointing this year. In the second quarter of 2025, the total turnover was $ 22.5 billion, by 12% years after year. The turnover of the car fell by 16% when deliveries fell and the average selling prices fell. The gross margin of the car was 17.2%, a decrease of 18.5% a year ago, with the company mentioning lower prices and less regulatory credits as a headwind. Operating costs also argue when the company occurred in artificial intelligence (AI) and expenditure for production card development.
But Tesla’s energy generation and storage activities were a highlight, with the gross margin of the 30.3% segment in the quarter and 29.6% for the first half, driven by lower unit costs on Megapack and Powerwall, even as the average selling prices illuminated. Implementations amounted to a total of 9.6 Gigawatt -hours (GWH) in Q2, and Tesla says that the 20 GWH used until the first half of 2025.
Helping the company continuing with this period of weak demand and high expenses is the strong balance of Tesla. During the first half of 2025, the net cash of operational activities was $ 4.7 billion, while cash and cash equivalents on 30 June amounted to $ 15.6 billion and short -term investments at $ 21.2 billion.
In the end, Tesla Stock is not a story about numbers – at least not at the moment. The management has been explicitly about where the company is going: heavier investments in AI, software, autonomous driving and robotics. Investors will be looking for Tesla to present evidence and arguments so that they believe that these ambitions will become large business administrators over time.
For now, Tesla’s rising energy company helps to alleviate the worries, because it shows how the company can introduce a new service or company and that it can grow into something huge. Storage margins in the range of 30% are useful and the product cadence continues: Tesla introduced new Megapack 3 and Megablock systems in September and underlined the push to meet the demand for aid programs and data center. At the same time, every three -month energy implementations can be lumpy, so persistent barge quality and disadvantaged details are important signals in the next update.
However, the bull case for Tesla shares cannot be completely dependent on future plans. With around $ 426 per share from this letter, the market assigns a premium that assumes income and progress of software and progress on autonomy and robotics today. That premium can be justified if Tesla shows the rising software income recognition, stronger automotive margins and continuous energy strength. But if the car price pressure continues to exist and the software contribution remains modest, today’s price can turn out to be ruthless, especially with shares that act more than 250 times profit from this writing.
For long -term investors who weigh a purchase before the win, patience can be the best choice. This does not mean that the shares will probably fall after the winning report. There is no way to know what will happen. There is simply a lot of uncertainty, and the appreciation of the proportion of prices in many of the company’s long -term ambitions. More clarity is needed to justify buying the shares for this price.
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Daniel Sparks and/or his customers have positions in Tesla. The Motley Fool has positions and recommends Tesla. The Motley Fool has a disclosure policy.
Is Tesla shares a bargain prior to his winning report next month? was originally published by the Motley Fool
