Why did TSLA's Q2 2024 earnings exceed expectations?

Tesla's Q2 2024 earnings exceeded expectations due to several key factors:

1. Revenue Growth: Tesla's total revenue for Q2 2024 was $25.71 billion, which is a significant figure considering the EPS and revenue surprises reported for the quarter. This indicates a strong revenue growth that surpasses market expectations.

2. Investor Attention and Market Performance: Tesla has been attracting investor attention, as indicated by its appearance on Zacks.com's list of the most searched stocks. The stock has returned +10.4% over the past month, outperforming the Zacks S&P 500 composite's +3.5% change. This heightened interest and positive market performance suggest that investors may have had higher expectations for Tesla's performance, which the company managed to exceed.
3. Institutional Investor Activity: Despite some institutional investors reducing their stakes, such as Pinnacle Bancorp Inc. decreasing its holdings by 54.4% and Grimes & Company Inc. decreasing its holdings by 4.7%, other institutional investors and hedge funds have been increasing their holdings in Tesla. For example, Romano Brothers AND Company increased its stake by 3.8%, and Meritas Wealth Management LLC boosted its holdings by 50.7%. This mixed but generally positive trend in institutional investment could have contributed to the company's ability to exceed earnings expectations.
4. Market Optimism and Upcoming Product Launches: There is optimism surrounding Tesla's upcoming product launches and a "historic Robotaxi Day" scheduled for August 8, 2024. These events can create a positive outlook for the company, leading to higher expectations that Tesla may have managed to surpass.

In conclusion, Tesla's Q2 2024 earnings exceeded expectations due to a combination of strong revenue growth, investor attention and market performance, institutional investor activity, and market optimism about upcoming product launches.