Clean energy and electric vehicle investors will scrutinize Tesla’s (TSLA) earnings report today. The stock responded bullishly to CEO Elon Musk’s pivot to robo-taxis, robotics, and self-driving software updates. Shareholders preferred to overlook the decline in EV unit sales, along with U.S. tariffs on BMW and Tesla vehicles made in China.
Weak profit margins and revenue pressures may pressure the stock after the Q2 report. However, markets may care more about the CEO’s update on Cyber truck sales and the robo taxi release date.
In the technology sector, Alphabet (GOOG) will post a strong increase in revenue in Q2. Customers are spending more on advertising. As it invests more in Gemini, the AI solution, shareholders will want to assess the increase in associated costs from the new technology. Microsoft (MSFT) is far ahead of Gemini through its Copilot offering, powered by ChatGPT. Still, people are unlikely to willingly create a Microsoft account and use the Bing search engine just to use Copilot.
Also in the tech sector, after last week’s service outage, insurers are likely to face limited costs. Customers have few legal options related to the CrowdStrike disruption. The terms of use would limit claims and litigation against CrowdStrike.
On Monday, Microsoft released a tool that would facilitate reviving a “BSOD” (crashed) computer system.
