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- 🏆 New All-Time Highs. Tesla Earnings and Outlook.
🏆 New All-Time Highs. Tesla Earnings and Outlook.
Earnings previews: BX, HON, UNP, DLR
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Market Performance
S&P 500: 6,359 (+0.78%)
Nasdaq: 21,020 (+0.61%)
Dow Jones: 44,502 (+0.40%)
A Rough Outlook
“Yeah, we probably could have a few rough quarters.” This is a soundbite from Tesla’s earnings call yesterday after the market close.
The EV maker reported Q2 revenue of $22.5 billion — marking its steepest year-over-year revenue decline in over a decade and missing Wall Street’s estimates.
Adjusted earnings per share, a key measure of profitability, were 40 cents, compared to Wall Street's estimates of 42 cents.
Tesla's stock price was down more than 4.5% in after-hours trading as the analyst call concluded.
Tesla provided a long-awaited update on its lower-cost vehicle, noting that initial builds began in June with volume production expected in the second half of 2025 and a public release planned for the fourth quarter.
The announcement followed a quarter during which Tesla delivered 384,000 vehicles. That’s 17.6% fewer deliveries than two years ago.
Our Takeaway
Tesla is in trouble on many fronts.
It’s selling almost 20% fewer cars than 2 years ago. The regulatory credits that have made the company billions over the years are being removed as we speak.
The fall out between CEO Elon Musk and President Trump looks irreversible, even though the past week has been more quiet on that front.
In light of these issues, we find it near impossible to reconcile a $1T and 186x Price/Earnings valuation. For the stock to go up from here everything would need to go perfectly well.
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Market Overview
Global markets are surging as investors cheer signs of a thaw in global trade tensions.
Stocks worldwide hit new highs after the U.S. sealed a trade deal with Japan and hinted that a similar agreement with the EU is close, potentially setting a 15% tariff cap on most goods.
Traders are growing more confident that Washington will take a practical approach to trade, especially with upcoming talks with China and South Korea on the horizon.
On the heels of yesterday’s trade deal with Japan, The EU and the U.S. are moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, according to diplomats.
Headlines You Can't Miss
President Trump will visit the Federal Reserve this Thursday in a surprise move clearly designed to up the pressure on Fed Chair Powell.
Columbia University has agreed to pay $200 million to the U.S. government to settle federal probes and have most of its suspended federal funding restored.
On the heels of yesterday’s trade deal with Japan, The EU and the U.S. are moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, according to diplomats.
Neuralink sees $1 billion of revenue by 2031 as it projects to put its chips in 20,000 people a year by 2031.
Tech Stock Moves
Tesla (TSLA) reported a 12% drop in revenue to $22.5 billion and adjusted EPS of $0.40, missing estimates and marking its steepest year-over-year revenue decline in over a decade
Elon Musk described the current period as a “weird transition period” and cautioned investors to expect “rough quarters” ahead, citing expiring EV credits, tariffs, and regulatory uncertainties.
Despite headwinds, Tesla launched its Robotaxi service in Austin, teased expansion plans—including robotaxi, Optimus robots, and an affordable EV, with initial builds already underway and volume production slated for late 2025.
CEO Quote🎤: “Does that mean we could have a few rough quarters? Yeah, we probably could have a few rough quarters … it’s not guaranteed but plausible.”
Alphabet (GOOG) reported a 14% year-over-year revenue increase to $96.4 billion, driven by robust growth across Search, Cloud (+32%), and YouTube ads.
The company announced a significant bump in 2025 capital expenditures to $85 billion, reflecting heavy AI infrastructure investment.
AI-powered features like AI Mode and AI Overviews are gaining massive adoption—over 100 million and 2 billion monthly users respectively—and are boosting engagement.
CEO Quote🎤: “AI is positively impacting every part of the business.”
T-Mobile (TMUS) reported record quarterly customer growth, adding 830,000 postpaid phone lines and 454,000 broadband connections, surpassing Wall Street estimates and comfortably outpacing Verizon and AT&T.
Revenue rose approximately 7% to $21.1 billion, with net income climbing 10% to $3.2 billion and adjusted EPS at $2.84—both beating expectations.
Management raised its full‑year guidance for postpaid net additions to $6.1–6.4 million and boosted free cash flow outlook to $17.6–18 billion, reflecting strong momentum.
CEO Quote🎤: “T‑Mobile crushed our own growth records with the best‑ever total postpaid and postpaid phone nets in a Q2 in our history…customers are switching to the Un‑carrier at a record pace.”
IBM (IBM) delivered solid top-line results, with revenue rising 8% year-over-year to $16.98 billion and adjusted EPS of $2.80, both beating analyst expectations.
Infrastructure led the charge with a 14% pickup—driven by new AI-optimized mainframes—while consulting growth rebounded 3%, and software rose 10% despite narrowly missing forecasts.
IBM’s generative AI book of business expanded to $7.5 billion, reflecting accelerating demand and underpinning its strong momentum
CEO Quote🎤: “Our generative AI book of business continues to accelerate and now stands at more than $7.5 billion.”
What’s Next?
Key Earnings Today 👇
Blackstone (BX): Revenue is forecast to grow by 11% to $2.8 billion and EPS by 15% to $1.10 per share.
Honeywell (HON): Analysts project quarterly revenue growth of 4.6% to $10 billion and earnings growth of 6% to $2.64 per share.
Union Pacific (UNP): Analysts project quarterly revenue growth of 1.6% to $6 billion and earnings growth of 4.7% to $2.87 per share.
Digital Realty Trust (DLR): Analysts project quarterly revenue growth of 6% to $1.44 billion and a decline in earnings by 45% to $0.90 per share.
Other Key News
Second-quarter tech earnings expected to show 14% growth vs 3.4% for other S&P 500 companies.
Broadcom Inc.’s $61 billion acquisition of VMware Inc. faces scrutiny from European Union judges, after a cloud computing group contested the bloc’s approval of one of the world’s biggest tech deals.
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Chart of the Day
Source: Visual Capitalist
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