Tesla discloses talks to license full self-driving software to other automakers
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Tesla (NASDAQ:TSLA) continued to swing between a small gain and a minor loss in after-hours trading on Wednesday after the company topped Q2 revenue and EPS marks, but did not boost full-year deliveries guidance and highlighted some drags on margins during the quarter.
During the earnings call, Elon Musk also said the electric vehicle giant is in early discussions with other automakers to license full self-driving software in a development that could provide a boost to the company's overall margins. A one-time transfer of FSD will also be made available in Q3. Musk also referenced a slight decrease in Q3 production amid some factory upgrades.
Analyst are out with updates already on the Tesla (TSLA) print. Wedbush Securities analyst Dan Ives noted that the "all-important" automotive gross margins ex credits mark came in at 18.1%, which was noted to be above the Street's estimate of 18.0% and whisper numbers of ~17.5%. Ives and his team believe Tesla (TSLA) is seeing steady demand post price cuts in the U.S. and China, with margins now in stabilization mode that should bottom over the next one to two quarters.
CFRA analyst Garrett Nelson was more cautious, noting investor expectations were clearly high heading into the release. Nelson called TSLA's shrinking gross margins remain a primary concern and said that U.S. EV fundamentals have become more dicey, with average U.S. EV transaction prices were down 20% year-over-year in June and inventory was at 103 days' supply.
Shares of Tesla (TSLA) was down 1.90% in after-hours trading at 5:57 p.m. after trimming 0.71% during the regular session. The 52-week high for Tesla is $314.67.
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