There are no big surprises or shocks in the earnings of Tesl...

There were no major surprises or impacts on Tesla's earnings. For a high-growth company, last quarter's performance was acceptable.

Tesla's stock catalysts have never been based on earnings, primarily dependent on delivery numbers or Elon Musk. However, if you look at Tesla's quarterly reports, some concerns still exist.

Sold 75% of the Bitcoin holdings.
In the second quarter, Tesla sold Bitcoin worth $0.936 billion, accounting for 75% of its holdings. The company now only has $0.218 billion of Bitcoin left on its balance sheet, compared to $1.26 billion in the first quarter.

With the trading of this cryptocurrency falling nearly 66% from its high of around $0.069 million per token in November last year, many investors have been feeling the pain. Musk seems to have timed the market well, as rough calculations suggest that Tesla's initial Bitcoin investment only incurred a loss of about $0.189 billion, based on the difference between its $0.936 billion Bitcoin converted into Fiat and the initial 75% ($1.125 billion) of the $1.5 billion expenditure.

Initial: $1.5 billion
Loss: $1.125 billion ($1.5 billion 75%) - $-0.936 billion = $0.189 billion
Tesla's cash flow
If Tesla does not sell bitcoin, Tesla's cash flow will change from +$0.8 billion to -$-0.1 billion. Tesla has had negative cash flow in the last four quarters, which is nothing significant.

However, Tesla's operation is able to generate stable cash flow. The problem with Tesla's negative cash flow is mainly due to large investment costs and debt costs.

However, there is a cost as high as $1.3 billion called 'Changes in operating assets and liabilities'. This is the reason Elon Musk sold bitcoin to maintain positive cash flow.

Which items are included? The summary of this item for the past four quarters (excluding the most recent 2 quarters) is shown in the table below. Since Tesla has not yet formally submitted financial reports to the SEC, it is currently unclear how the specific performance will be in the second quarter. Speculation can only be made based on first-quarter and earlier data.

Among these unfavorable sub-items for operating cash flow, 'Other non-current assets' has reached hundreds of millions of dollars in the past few quarters. The reason for converting cash to 'Other non-current assets' may include land investments, factory equipment, goodwill, long-term investments, etc. It is difficult to convert these assets into cash. It is currently uncertain whether most of the $1.3 billion in the second quarter has also entered 'Other non-current assets'. If so, more information is needed to understand where it is allocated, whether it is one-time or long-term expenditure.

Decrease in orders
Elon Musk has recently indicated multiple times that Tesla may lower its selling price. If Tesla raising prices is an expression of "strong consumer" confidence, then Musk suggesting a price reduction may easily lead people to think of a "weakening consumer".

In addition, Musk's recent comments on economic expectations and layoff decisions have led many to speculate a potential weakening in order quantities.

During this earnings call, analysts also raised the following question:
"Do you see any pressure on orders?"

"Well, at the moment, our issue is largely production."

"Specific to your question, have we seen the impact of macroeconomics on our demand?"

"Perhaps to some extent, but it is..."

It's no surprise that even iPhones have experienced a downturn in consumption. The lifecycle of autos is longer. The key question is, what can Tesla do after the decrease in the number of Tesla orders?

Currently, Tesla still has a large number of orders. Musk stated that the waiting period for a vehicle is 6-12 months, which is sufficient for Tesla. Due to Tesla's high gross margin, there is still room for price reduction. Lowering prices will certainly attract consumers.

After the price reduction, Tesla will have to rely on new vehicles or products to dominate the industry. During this earnings call, Musk expressed great confidence in the launch of Full Self-Driving (FSD) and mentioned that there would be further price increases. As for Tesla's Cybertruck, it may not be ready for mass production and delivery until next year.

Short-term price pressure - $857 or $908?
Here's a technical analysis of Tesla (TSLA): there is significant short-term resistance in the price.

The chart for the first week indicates that once Tesla touches the 30-WMA (at $857), there may be selling pressure.

Pressure is at the 30-WMA/$857.

From the daily chart, we can see that Tesla's brokers have been approaching several recent highs since May, and the next price pressure will be close to the 200-day moving average, at $908.

Pressure is at DMA200/$908.34

Last question:
Do you have strong confidence in Tesla?

What is your short-term or long-term target price for Tesla? (Stock split on August 4th)