Tesla, the electric vehicle maker, has recorded its fourth straight earnings miss, marking a significant milestone for the company. The earnings for the second quarter came in 17% below consensus, the largest miss since January 2021. Additionally, gross margins for Tesla fell to 14.6%, down by half from the first quarter of 2022.
In response to the disappointing earnings, Tesla shares declined by 4.7% after hours. The company reported adjusted earnings per share at 52 cents, missing analysts’ expectations of 62 cents per share. However, Tesla did post $25.5 billion in quarterly revenue, slightly higher than the estimated $24.77 billion.
Other companies also experienced significant movements in after-hours trading. Alphabet, the tech giant, slipped 1% despite beating both top and bottom line expectations in the second quarter. Visa shares slipped more than 2% after reporting a revenue miss in its fiscal third quarter. On the other hand, Seagate shares rallied more than 6% after posting an earnings and revenue beat in the fiscal fourth quarter.
Overall, U.S. stock futures declined across the board on Tuesday night, with S&P 500 futures falling 0.3%, Nasdaq 100 futures dropping 0.4%, and Dow Jones Industrial Average futures decreasing by 0.2%.
Investors will be closely monitoring these developments as they navigate the volatile market conditions.
