Tesla's (TSLA) stock continues its rally after releasing second quarter delivery numbers that beat expectations. Morningstar equities strategist Seth Goldstein joins Morning Brief to discuss his outlook on the company moving forward.

Goldstein tempers expectations regarding profit margins, stating he doesn't expect to see "much-improved profit margins" and suggesting that margins could possibly fall in the second quarter. However, he notes that profit margins might increase if the automaker can address some operational costs in the latter half of the year.

Regarding Tesla's product line, Goldstein acknowledges that the Cybertruck failed to meet quality standards and expectations. Nevertheless, he remains optimistic, suggesting that since it is the first year, the company could "work through the mass manufacturing issue," calling it "not any major issue they can't overcome."

With the upcoming US election, Goldstein discusses the potential impact of presidential candidates on the EV market, noting the contrast between Biden's EV-friendly regulations and Trump's intention to roll them back. Despite this political uncertainty, Goldstein remains confident in Tesla's position:

"Even if Trump were to win the White House and overturn the inflation reduction act of getting rid of EV subsidies, I still think that Tesla has been able to move into lower and lower price points over time, and with that new affordable vehicle, you're looking at an entry-level price that's going to be on par with comparable and combustion engine vehicles."

Read more about Tesla's rally here:
Tesla looks to extend win streak to 9th day
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Tesla stock rises again, extending monster 40% rally over the last month

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This post was written by Angel Smith