What's more important than Tesla's financial report: new production capacity, AI, Model 2, Cybertruck

Tesla will release its second-quarter earnings report after the US stock market closes on Wednesday.

Wall Street expects Tesla's second-quarter earnings per share to be around 80 cents, compared to 76 cents in the same period last year and 85 cents in the first quarter.

Investors may focus on earnings per share, revenue, and profit margins, but there are other factors that will have a greater impact in the long term.

New Production Capacity

Tesla's four assembly plants in California, Texas, Shanghai, and near Berlin have a combined annual production capacity of approximately 2 to 2.5 million vehicles.

Investors expect the company to continue expanding. Tesla has already announced plans to build a factory in Mexico.

Tesla has recently hinted at investing in India. In addition, The Wall Street Journal reported on Tuesday that Tesla plans to double the size of its German factory.

Model 2

The Mexican factory is expected to eventually produce a smaller and more affordable new model, commonly referred to as the Model 2 (currently without an official name).

Ultimately, Tesla will need a new approach to expand its target market. While Tesla is a popular model, its sales growth rate is not as fast.

According to data from Cox Automotive, Tesla sold 105,158 Model Y vehicles in the United States in the second quarter, a year-on-year increase of 76%. Tesla sold approximately 57,837 Tesla vehicles in the second quarter, an increase of about 6%.

Tesla

The next major product to be launched is not the Model 2, but Tesla.

Last weekend, Tesla announced that it had produced its first Tesla at its factory in Austin, Texas.

For investors, how many Teslas will be produced and delivered in 2023 is a major concern.

Wall Street expects around 10,000 vehicles in 2023. If the number exceeds this, profit expectations will need to be raised.

Other Businesses

In the second quarter, Tesla announced agreements with several automakers to open up its Tesla Supercharger network to non-Tesla electric vehicles, causing a sensation.

In addition, the data on battery storage may surprise investors. Tesla deployed 3,889 megawatt-hours of battery storage in the first quarter, a record high and a year-on-year increase of 360%.

Tesla's artificial intelligence business will also attract attention. In addition to autonomous driving, Tesla is using its AI technology to manufacture robots.

Thousands of Tesla owners have purchased Tesla's most expensive full self-driving software package. The robot business still has a long way to go, but that doesn't stop investors from dreaming about its potential.