[Click e-Stock] "Tesla Maintains Momentum Despite Headwinds"

On September 5, Korea Investment & Securities maintained its view of Tesla as the top global electric vehicle stock, stating that while the expiration of the Inflation Reduction Act (IRA) tax credits presents a risk factor, a rebound in U.S. electric vehicle sales in the third quarter is expected to drive short-term earnings improvement.

Tesla's revenue for the second quarter (April to June) was $22.496 billion (approximately 31 trillion won), a 12% decrease compared to the same period last year. During the same period, earnings per share (EPS) fell by 23% to $0.40. After the earnings announcement, Tesla CEO Elon Musk said during a conference call that the company is likely to face challenging times ahead due to the expiration of electric vehicle tax credit benefits.

Lee Jisoo, a researcher at Korea Investment & Securities, commented, "Going forward, the key point to watch is the timing of the launch of the new low-cost model and how much it can differentiate itself from the existing lineup in terms of price and features to drive demand." Lee added, "It is positive that initial production of the low-cost electric vehicle began as scheduled in June, and mass production is also being pursued in the second half of the year."

The continued momentum in autonomous driving is also cited as a factor mitigating pessimism. Lee noted, "Tesla is the only company to have achieved vertical integration from vehicle manufacturing to platform, and it holds a leading position in technology. The company is focusing on technological advancement ahead of the launch of Robotaxi and Full Self-Driving (FSD) v14." Lee also pointed out that the scaling back of expensive AI projects such as 'Dojo' should provide some relief.