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Tesla Earnings: Affordable Vehicle Still on Track for 2025 Launch and 2026 Ramp
Tesla's second-quarter results were largely in line with our view for the cadence of the year. Operating profits were down roughly 33% year over year due largely to lower average automotive selling prices, but up 37% sequentially versus the first quarter, driven by strong energy generation and storage profits and lower corporate expenses. With our outlook largely unchanged, we maintain our $200 per share fair value estimate. Our narrow moat rating also remains unchanged.