Tesla’s second-quarter earnings report for 2024 has revealed mixed results, with the electric vehicle giant surpassing revenue expectations but falling short on profit estimates. The company reported revenues of $25.5 billion, exceeding the projected $24.77 billion. However, adjusted earnings per share came in at 52 cents, below the anticipated 60-62 cents.Despite the revenue beat, Tesla’s shares fell approximately 4% in after-hours trading. This reaction reflects ongoing concerns about the company’s margins and growth trajectory. Tesla reiterated its expectation of a ‘notably lower’ growth rate for 2024, and revenue from car sales dropped 7% to $19.8 billion compared to the same quarter last year.The company’s performance comes amid a strategy of price cuts and buyer incentives, which have helped drive higher-than-expected electric vehicle deliveries. Analysts suggest that Tesla’s approach of offering less expensive financing options rather than large price cuts may distribute the negative impact on margins over multiple quarters.Meanwhile, Tesla continues to invest heavily in future technologies. CEO Elon Musk is expected to discuss the company’s plans for AI products and autonomous driving, including the delayed unveiling of its robotaxi prototype. Musk has also announced plans for a humanoid robot, Optimus, which is expected to start working in Tesla’s factories next year.In contrast to Tesla’s mixed results, General Motors reported strong second-quarter earnings, driven by robust sales in North America. GM’s net income rose 14% to $2.93 billion, with adjusted earnings per share of $3.06 significantly outperforming analyst projections. However, GM also faced challenges, particularly in the Chinese market where its sales fell 29% year-over-year.The broader US stock market remained relatively calm as investors shifted their focus to the tech earnings season. The Dow Jones Industrial Average and S&P 500 indices showed minimal movement, while the Nasdaq 100 index fell 0.14%.
Key points
- Tesla’s Q2 revenue surpassed expectations at $25.
- Tesla’s stock fell about 4% in after-hours trading despite the revenue beat.
- General Motors reported strong Q2 results, with net income rising 14% to $2.
- The broader US stock market remained calm as investors focused on tech earnings.
5 billion, but adjusted EPS fell short at 52 cents.
93 billion.
Contradictions👾While Tesla’s revenue increased, its profit margins decreased, leading to mixed market reactions.
👾General Motors reported strong results in North America but faced significant challenges in the Chinese market.
