Tesla’s (TSLA) Q2 2019 earnings call with Elon Musk set for July 24

Tesla (NASDAQ:TSLA) has announced that it would be posting its financial results for Q2 2019 after the market closes on Wednesday, July 24, 2019. The company would be issuing a brief advisory with a link to its Q2 2019 Update Letter, which will be accessible from Tesla’s Investor Relations website. A live Q&A session is set for 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time) to discuss the electric car and energy company’s financial results and outlook.

Analysts polled by FactSet currently expect Tesla to report an adjusted loss of $0.45 per share on sales of $6.6 billion in the second quarter, which compares favorably with an adjusted loss of $3.06 per share on sales of $4 billion in Q2 2018. So far, the rather early earnings call date appears to have been received well by the market, with Tesla shares trading 1.81% at $242.91 per share as of writing. 

Tesla’s financial results for the second quarter are up for question, considering that Elon Musk has mentioned that Q2 2019 could see a loss once more. Nevertheless, expectations are high that Tesla’s finances in Q2 will be more palatable compared to the company’s first-quarter results, which showed a loss of $702 million, thanks in part to delivery difficulties to international markets such as Europe and China. These challenges were expected to have been mostly addressed in the second quarter, paving the way for a potential return to profitability in Q3 2019. 

Quite interestingly, Tesla’s rather early second-quarter earnings call announcement comes amidst news of challenges being faced by companies considered as the Silicon Valley-based carmaker’s rivals in the EV market. Among these is NIO, widely called the “Tesla of China,” which is seeing some roadblocks in its momentum. NIO had a promising start in 2018, but recent months have been difficult for the company, as reflected in the electric car maker’s slumping sales, the departure of US CEO Padmasree Warrior, and concerns about the quality of the company’s vehicles. These challenges have been reflected in NIO’s stock price, which has declined 42% since its IPO in September. 

Fellow Chinese EV startup Seres (formerly known as SF Motors), at one point also deemed a potential rival to Tesla, was racked with a round of layoffs for its US staff. The company had employed about 300 people in Santa Clara as it planned a potential US launch for its first electric vehicle, the all-electric SF5 SUV. But at a recent staff meeting, the company announced that it would be laying off 90 employees at its US headquarters in Santa Clara. 

BMW, which is trying to get its momentum back in the electric car market, also faces some challenges with its freshly unveiled Mini Electric. The vehicle, which actually looks pretty fun, has notably underwhelming specs, with a paltry 146 miles of range, a starting price of $35,000, and technology that’s primarily based on the aging i3, a competitor of the early versions of the Model S. This is far below the bar set by vehicles like the Tesla Model 3 Standard Plus, which starts just below $40,000, but has 240 miles of range and standard features like Autopilot.

These challenges faced by young companies like NIO and veterans like BMW show that the electric car segment, which Tesla has survived in for 16 years now, is becoming a very tough business to crack. With other companies like Kia and Hyundai coming up with low-priced EVs that are bang for the buck like the Niro EV and Kona Electric, and with Tesla widening its lead over the competition with the Model 3, the electric car segment is only bound to get more competitive. It wouldn’t be surprising to see companies with weaker hands get shaken off in the coming years.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.