The major overhang on the Tesla story over the past year has been Gross Margins (Auto ex credits) under major pressure as a price war in China and softer EV demand globally has seen this metric go from the low 20% level to sub 15% in the June quarter. Last night, we saw this all-important metric spike back to 17.1%, handily beating the Street's estimate at 15.1%, and now appearing to be on a trajectory back into the 20% level in 2H2025.
There is growth, and if they can do it with the margin strength that they have, now folks can stop thinking about the automotive piece and margins, and start looking at what really should drive Tesla stock, which is non-automotive things - Energy storage, autonomy, potentially Optimus.
They had an incredible quarter from a margin perspective, much better than anyone thought because the costs of production came down to levels they've not seen recently, making analysts optimistic about future performance.
[
Collection
]
[
|
...
]