tesla is a car company. they make electric cars. their stock price went down because they didn't make as much money as people thought. also, their boss, elon musk, said the company will focus more on making cars drive themselves in the future. this made some people worried and they sold their tesla stocks. Read from source...
article titled `Tesla Stock Is Plunging Over 7% In Wednesday's Pre-Market After Q2 Earnings: What's Going On`. Key Points - Second Quarter earnings didn't meet consensus estimates, but revenue did increment modestly. Investors' main concern seems to be Tesla's gross margin, free cash flow, and the lower than anticipated 2024 volume growth by Elon Musk. Adjusted earnings per share, however, would have beaten consensus if it wasn't for restructuring charges. Tesla's shares fell sharply in pre-market trading on Wednesday, with the pullback coming after the company reported its Q2 results.
1. Tesla (TSLA) - In premarket trading, TSLA shares fell sharply due to the company's Q2 report, which saw earnings per share trail expectations and revenue only modestly increase. Investors are particularly worried about the auto gross margin, free cash flow, and the fact that regulatory credits nearly doubled, providing a transitory boost to the bottom line. Elon Musk's comments regarding volume growth and focus on FSD, autonomy, fleets, and Optimus also affected sentiment. The stock is currently down 0.85% for the year-to-date period. (Potential Risks: Lower-than-expected margins, reliance on regulatory credits, market sentiment around Tesla products).
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