From being the worst performer within the Magnificent Seven to the best-performing, Tesla (NASDAQ:TSLA) inventory has been terribly risky for a mega-cap firm in 2024.

Nonetheless, Tesla gave again a few of its latest features in pre-market buying and selling on 23 July after its second-quarter earnings missed expectations.

The inventory was down round 2% earlier than the outcomes name. It fell an extra 7% after the market closed.

So, what occurred, and is that this a possibility for UK buyers?

One other painful quarter

The electrical automobile maker reported income of $25.5bn for the second quarter, reflecting a modest 2.3% improve yr on yr.

Nonetheless, the all-important earnings per share (EPS) fell wanting expectations at $0.52, in comparison with the consensus estimate of $0.62 and down from $0.91 a yr in the past.

The corporate delivered 443,956 automobiles through the quarter — barely greater than analysts anticipated — and up from Q1. Manufacturing stood at 410,831 automobiles, suggesting Tesla is decreasing its stockpile.

In the meantime, the corporate’s gross margin stood at 18%, barely down from 18.2% a yr in the past. That displays the pricing cuts Tesla has enacted to place strain on its loss-making friends.

The stability sheet was in a robust place on the finish of the quarter with $30.4bn in money, placing it in a robust place for future Robotaxi and synthetic intelligence (AI) investments.

What does this all imply?

Except somebody follows Tesla inventory often, it may be laborious to know what’s occurring with the share price and the valuation.

After two disappointing quarters, we’d count on the inventory to be buying and selling a lot decrease. However that’s not the case, and it’s beginning to look extremely costly.

It’s now buying and selling at 98.4 occasions ahead earnings. Simply let that sink in.

Nonetheless, Elon Musk doesn’t need buyers to see Tesla as a automotive firm. And he’s been very profitable in convincing individuals to put money into Tesla for its future tasks — the Robotaxi, the Optimus robotic, and its power enterprise.

In actual fact, after the disappointing Q1 earnings, and with the share price slipping, Musk took to X to vow the revealing of the Robotaxi on 8 August.

And this created the hype Musk needed.

Nonetheless, it was confirmed within the Q2 outcomes that Musk was a bit of optimistic, and the revealing will probably be pushed again additional.

That’s a kick within the enamel for anybody who invested in Tesla anticipating a ready-to-deploy Robotaxi on 8 August.

It’s additionally a bit embarrassing for a few of Musk’s greatest supporters like Cathie Wooden whose Ark Make investments fund just lately projected Tesla’s Robotaxi enterprise will ship greater than £900bn in income in 2029 alone.

Is that this a possibility for UK buyers?

Round 18 months in the past, Tesla shares dropped to round $100 every, and I didn’t purchase as a result of the pound was so weak.

Now the pound is far stronger — round 30% stronger — and it could not keep this manner ceaselessly. So, in that respect, it may very well be a great time to purchase US-listed shares like Tesla.

Nonetheless, the dip within the share price post-earnings doesn’t appear like a shopping for alternative to me.

Sure, Tesla has an enormous quantity of potential, however I’m but to see the technological breakthroughs that can ship on that promise.

With out the tech, it’s only a massively costly automotive firm.