Tesla’s profit plunges by 45% in Q2 ’24

Tesla’s second-quarter net income dropped by 45 per cent compared to the previous year, with global electric vehicle sales declining despite price reductions and low-interest financing.

The company reported $1.48 billion in earnings for April through June, down from $2.7 billion in the same period last year, marking a second consecutive quarterly decline in net income.

Tesla’s revenue for the quarter increased by two per cent to $25.5 billion, surpassing Wall Street estimates of $24.54 billion.

It sold 443,956 vehicles in the second quarter, a 4.8 per cent decrease from the previous year. This figure exceeded analyst expectations but indicated weakening demand for the company’s existing product line-up.

In the first half of the year, Tesla sold approximately 831,000 vehicles globally, falling short of CEO Elon Musk’s predicted 1.8 million for the full year.

The company’s gross profit margin decreased to 18 per cent from 18.2 per cent a year ago and a peak of 29.1 per cent in the first quarter of 2022.

Tesla reported record quarterly revenue despite challenging operating conditions. The company’s energy-storage business generated over $3 billion in revenue, doubling from the previous year.

Despite challenges, Tesla posted record quarterly revenue. Musk postponed the robotaxi unveiling to make improvements and plans to introduce the Optimus humanoid robot next year.

The company is considering delaying a decision on building a factory in Mexico until after the US presidential election.

Notably, Tesla’s revenue from regulatory credits reached $890 million in the second quarter, and it incurred $622 million in restructuring expenses due to layoffs.

Attribution: AP