Wall Street Brunch: Tesla Reports With Earnings In Full Swing (undefined:TSLA)

Listen below or on the go on Apple Podcasts and Spotify

Focus will move beyond autos to AI. (0:17) Comi-Con starts Thursday. (1:52) U.S. strikes Iran’s Revolutionary Guard. (2:24)

The following is an abridged transcript:

With earnings season in full swing and Tesla (TSLA) is lined up to report Wednesday.

Analysts expect Tesla to report revenue of $26.4B, EPS of $0.54 and automotive gross margin excluding credits slightly above 18%.

Tesla already disclosed that it delivered 480,126 vehicles in Q2 and produced 451,758. Beyond the core numbers, investor attention will once again center on the updates on autonomy, software, the robotaxi rollout, and AI4-AI5 chips, as well as the capex needed for the company to be a leader in physical AI.

SA Analyst Yiannis Zourmpanos says Tesla enters earnings with momentum on its side.

“The improvement in demand, rising analyst expectations, and strong execution show that the market could be undervaluing the stock’s potential earnings performance,” he added.

But Agar Capital warns a great company does not necessarily mean a great stock.

They argue its market cap of $1.5T is overvalued by $1T for “businesses that still lack commercial scale, complete authorizations, verifiable unit economics, and significant FCF.”

Here’s how the rest of the earnings calendar shapes up:

Domino’s Pizza (DPZ) and AMC Entertainment (AMC) report Monday.

Novartis (NVSEF), 3M (MMM), GM (GM) and Halliburton (HAL) are due Tuesday.

Alphabet (GOOG) (GOOGL), Texas Instruments (TXN), IBM (IBM), AT&T (T), ServiceNow (NOW), Philip Morris (PM) and Kinder Morgan (KMI) join Tesla on Wednesday.

Thursday brings reports from Intel (INTC), T-Mobile (TMUS), Lockheed Martin (LMT), Union Pacific (UNP) and Comcast (CMCSA).

American Express (AXP), Verizon (VZ) and Charter Communications (CHTR) close out the week on Friday.

The economic calendar is very light, but this week also brings, AMD’s (AMD) Advancing AI event in San Francisco on Wednesday, where CEO Lisa Su is expected to outline the chipmaker’s latest AI strategy.

The biennial Farnborough International Airshow begins Monday, with Boeing (BA), Airbus (EADSF), Embraer (EMBJ) and other industry leaders expected to announce aircraft orders and showcase new technologies.

And San Diego Comic-Con kicks off Thursday, with Disney (DIS), Warner Bros. Discovery (WBD), and Apple (AAPL) among the media companies expected to showcase upcoming films and streaming content.

In the news this weekend, the U.S. military launched airstrikes targeting Iran’s Islamic Revolutionary Guard Corps on Sunday in retaliation for an attack in Jordan that killed two American service members and wounded four others, further escalating the conflict between Washington and Tehran.

Walmart (WMT) announced that it has removed four bagged iceberg lettuce salad products after receiving a notice from its supplier, Taylor Farms, as recalls tied to a cyclosporiasis outbreak that causes explosive diarrhea widen.

Taylor Farms is one of the largest suppliers of fresh vegetables and packaged salads in North America, serving retailers including not just Walmart (WMT), but Costco (COST) and Whole Foods Market (AMZN) as well as McDonald’s (MCD) and Taco Bell (YUM).

And for income investors, Caterpillar (CAT) and Colgate-Palmolive (CL) go ex-dividend on Monday.

Caterpillar pays on August 19 and Colgate-Palmolive on August 14.

Dell (DELL) goes ex-dividend Tuesday, with a July 31 payout date.

Pfizer (PFE) goes ex-dividend on Friday, paying out Sept. 1.