tesla misses on earnings, despite revenue beat
Tesla reported second-quarter revenue of $28.2 billion, beating consensus economist projections of $27.2 billion, according to FactSet. The firm posted earnings of 33 cents per share, however, which fell well below estimates of 55 cents. Tesla also reported its first quarter of negative free cash flow in more than two years, running just over $1 billion in the red, as chief financial officer Vaibhav Taneja reiterated Tesla planned to spend more than $25 billion this year, noting that figure will likely rise in the coming years.
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key background
Some analysts have suggested that Tesla and SpaceX could merge, as Musk has worked to fold his companies into one another. SpaceX president Gwynne Shotwell told CNBC a deal combining the rocket maker with Tesla “might make Elon’s life a little easier,” arguing there was “no question that there are synergies between Tesla and SpaceX in our futures.” Musk reportedly discussed the possibility of combining the two companies, and Tesla employees have purportedly said many workers at the company are expecting a transaction to take place. Former Wedbush Securities analyst Dan Ives said ahead of SpaceX’s initial public offering last month his firm had placed odds of 80% or higher for Tesla and SpaceX merging by 2027, writing in a separate note the “groundwork is already in place for both operations to become one organization.”
further reading
ForbesCould Musk Merge SpaceX And Tesla? Here’s What Analysts—And Betting Markets—SayBy Ty Roush