Tesla reported disappointing earnings for the fourth quarter in a row. The electric vehicle company’s earnings in the second quarter were 17% lower than expected, marking their largest miss since January 2021. Gross margins also took a hit, falling to 14.6% from 30% in the previous quarter. This news caused Tesla’s stock to decline by 4.7%. Despite this setback, Tesla did manage to exceed revenue expectations, reporting $25.5 billion in quarterly revenue.
In other stock market news, Alphabet, the parent company of Google, saw its stock drop 1% despite beating expectations for both revenue and earnings in the second quarter. Visa also experienced a decline in stock value after missing revenue forecasts in their fiscal third quarter. On a positive note, Seagate’s stock rallied over 6% after reporting better-than-expected earnings and revenue in the fiscal fourth quarter, citing an improvement in the cloud computing sector. Overall, stock futures for the S&P 500, Nasdaq 100, and Dow Jones all fell Tuesday night.
Vocabulary List:
- Disappointing /ˌdɪs.əˈpɔɪn.tɪŋ/ (adjective): Failing to fulfill someone’s hopes or expectations.
- Decline /dɪˈklaɪn/ (verb): To decrease in quantity value or quality.
- Expectations /ˌɛk.spɛkˈteɪ.ʃənz/ (noun): Beliefs about what will happen in the future.
- Margins /ˈmɑːr.dʒɪnz/ (noun): The difference between the cost of producing something and its selling price.
- Surpassed /sərˈpæs/ (verb): To go beyond in quantity quality or degree.
- Rallied /ˈræl.iːd/ (verb): To recover or improve in strength or position.
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