Tesla reports 45 percent decline in quarterly profit
SAN FRANCISCO – Tesla reported Tuesday that its quarterly profit fell 45% from a year earlier as the electric-vehicle maker continued to struggle with increasing competition and an uncertain outlook.
Net profit for the second quarter declined 45% to $1.48 billion, while revenue edged up 2% to $25.5 billion.
Executives were confident last quarter that sales would turn around, as they attributed the dip to a unique confluence of factors, including a global slowdown in EV sales and production disruptions.
Shares of Tesla dipped about 3% in after-hours trading.
In April, Tesla reported a steeper-than-expected 55% plunge in profit for the first quarter. CEO Elon Musk said at the time that the outlook for the second quarter would be “a lot better,” adding: “I think we will have higher sales this year than last year.”
Also at the time, Musk had emphasized the company’s plans to unveil a “cybercab” – a fully autonomous robotaxi – in August. Plans for that launch, however, have been delayed until October.
“Moving back a few months allowed us to improve the robotaxi as well as add in a couple of other things for the product unveil,” Musk said on an earnings call Tuesday.
Musk said he expects to have the first fully autonomous ride “possibly by the end of this year. I would be shocked if we cannot do it next year.”
But, he added, “My predictions on this have been overly optimistic in the past.”
According to the National Highway Traffic Safety Administration, any company seeking to operate a noncompliant vehicle, like a robotaxi, without a steering wheel or gas pedals, must apply for and receive an exemption from the agency before operating on public roads. As of last week, Tesla has not applied for any exemptions for a robotaxi in the United States, NHTSA said.
Tesla said in a statement that it remains focused on cost reduction and investing in AI-enabled products.
The company said plans for more affordable vehicle models “remain on track” for start of production in the first half of 2025.
“These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up,” it said.
“Perhaps more than ever in the company’s recent history, Tesla’s investors need results,” said Thomas Monteiro, senior analyst at Investing.com. “Those will have to come fast – both for the humanoid robot and for the robotaxi.”