The Future Fund LLC's managing director, Gary Black, thinks Tesla Inc. (NASDAQ:TSLA) will have a "positive stock reaction" following the upcoming earnings call on Wednesday.
Check out the current price of TSLA stock here.
What Happened: Ahead of Tesla's second-quarter earnings call on Tuesday, Black posted on X, forecasting adjusted earnings per share of 39 cents and an automotive gross margin of 13.3% excluding regulatory credits.
However, he outlined the importance of Tesla's comments on Robotaxis to investors during the call. "More important will be management commentary during the conference call of when safety drivers will be taken out of robotaxis in Austin," he said.
Black added that doing so would help Tesla reiterate that its robotaxis are capable of achieving Level 4 autonomy and expanding its service network. The investor also shared his thoughts on a new affordable Tesla vehicle.
Likely to be based on the Model Y, according to Black, the affordable model won't expand the company's total addressable market "unless it's a new form factor." "We don't view a 6-seat Model Y (the Model Y L) with a longer wheelbase as a new form factor," black said.
Why It Matters: The news comes as Tesla is gearing up for the second-quarter earnings call. Tesla is expected to report a revenue of $22.79 billion, as Elon Musk's EV giant has missed revenue estimates for three consecutive quarters.
This comes as Tesla experienced a near 20% decline in sales in China, recording over 9,900 new insured registrations in July's third week. The company has also experienced a 12% decline in second-quarter sales in the U.S.
Elsewhere, Tesla also risks losing its license to sell cars in California amid a lawsuit by the California DMV, which accuses the company of false advertising by overestimating the capabilities of its Autopilot and FSD or Full Self-Driving systems.
Tesla offers Satisfactory Momentum and Quality, while scoring well on the Growth metric, but offering poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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