Tesla's quarterly report is not bad, so why did the stock still drop more than 4% after hours? It's all because Tesla reiterated that they will lower prices!

Tesla's stock price fell again after hours. This time, what disappointed investors was not the financial report itself, but the unspoken words during Tesla's conference call.

Overnight, Tesla released its second-quarter report, which showed:

Quarterly revenue of $24.927 billion, a year-on-year increase of 47%, nearly double the year-on-year growth rate of 24% in the first quarter, and exceeding analysts' expectations of a year-on-year growth of 45% to $24.51 billion;

Adjusted EPS of $0.91, a year-on-year increase of 20%, far exceeding analysts' expected year-on-year growth of 6.6% to $0.81;

Operating profit of $2.399 billion, a year-on-year decrease of 3%; operating profit margin of 9.6%, a year-on-year decrease of 493 basis points;

Gross margin of 18.2%, the lowest level in 16 quarters, lower than analysts' expected 18.8%, a year-on-year decrease of 682 basis points, and a quarter-on-quarter decrease of about 110 basis points.

It was expected in the market that Tesla's profitability would decline since it announced "sales volume first, then profit" and started a price war.

Some analysts on Wall Street even described this financial report as "mediocre, without many surprises" - just like the stock price, which hardly changed after the report was released. However, as Tesla started speaking, the stock price fluctuated and eventually fell more than 4% in after-hours trading.

What angered investors about Tesla?

First of all, Tesla stated that in this "turbulent period," it still intends to continue lowering prices, stating that "selling more cars is more important than the profit margin per car."

Tesla also mentioned that it will profit from its Full Self-Driving (FSD) software. However, some analysts pointed out that "Tesla's confidence in FSD is not in line with investors' expectations" - shareholders still hope to see Tesla make money by selling new cars.

Furthermore, due to summer factory upgrades, Tesla expects production to slightly decrease in the third quarter compared to the second quarter. However, at present, the decline in production in the third quarter seems to be worse than Wall Street's predictions.

Moreover, the two major pieces of news that investors were eagerly anticipating - Tesla and Robotaxi - were not disclosed by Tesla at all.

After announcing last week that the first Tesla was produced at the Texas factory, Tesla continued to emphasize that this model will be delivered later this year and mass-produced next year. However, not only did they not provide a specific date, but they also stated that "production is difficult to predict."

As for the Robotaxi, which the Royal Bank of Canada (RBC) recently valued at a staggering $700 billion, Tesla did not make any relevant disclosures, but insisted that they have confidence in Tesla's autonomous driving technology.