Bull: Tesla's operating story is improving. Gross margin rose to 19.6% (versus 17.8% expected), free cash flow was positive at $1.5B, and cash and investments stand at $45.4B. Software is scaling, with over 75% of North American deliveries including an FSD subscription. The robotaxi service has logged nearly 2 million unsupervised miles, Cybercab service is due in Dallas this month, and management expects robotaxi to contribute financially from Q2 2027. Energy storage margins are near 33%, and the vehicle backlog is the largest in four years.
Bear: Profit is shrinking. Revenue was flat at $28.05B, GAAP net income fell 43%, and operating margin dropped to 2.6% as R&D jumped 69%. Deliveries fell 2%, regulatory credit revenue fell 73%, and average selling prices keep slipping. Capex could spike in Q4 and Musk's robotaxi and Optimus timelines have repeatedly slipped. The valuation depends on autonomy and robotics succeeding.
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- Brando741319·00:22GoodLikeReport