Wall Street is holding onto its outlook on Tesla after it delivered a solid earnings report that nevertheless showed weaker margins after the company's aggressive price cuts.
The electric vehicle maker reported revenue of $24.93 billion, beating the consensus estimate of $24.47 billion, according to Refinitiv.
"We believe this was a solid 2Q report with Tesla taking market share and slightly exceeding our automotive non-GAAP margin estimate (and beating in Energy/Services)," Delaney said Wednesday.
"However, we believe there could continue to be margin headwinds in the intermediate term if Tesla lowers prices to support higher volumes."
"Ultimately, the weaker gross margin highlighted the impact of TSLA's aggressive price cutting and, at 9.6%, its operating margin is now approaching the level of incumbent original equipment manufacturers (OEMs)," he added.
Persons:
That's, Elon Musk, Tesla, Goldman Sachs, Mark Delaney, Tesla's, Delaney, Bank of America's John Murphy, Murphy, Morgan Stanley's Adam Jonas, Jonas, — CNBC's Michael Bloom, Lora Kolodny
Organizations:
Wall Street, Tesla, Energy, Services, Bank of America's