BofA Securities highlighted in a report that Tesla (TSLA.US) reported 2Q non-GAAP earnings of US$0.52 per share, below the broker's and the market's expectations of US$0.7 and US$0.6 per share, primarily due to a US$622 million restructuring charge. Revenue and gross profit of the automotive business were slightly below the broker's estimations, while the Energy and Services business was broadly in line with the broker's predictions.
The group's operating margin, adjusted for restructuring charges, was 8.7%, lower than the broker's estimate of 9.2%.
BofAS trimmed its target price on Tesla to US$255 from US$260 and reiterated its Buy rating. The broker believed there are still a number of catalysts that could help drive the stock higher, including the October release of Robotaxi, the potential licensing of full self-driving (FSD), new product announcements, and the realisation of cost savings.
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