Tesla’s second-quarter earnings report for 2024 has revealed a significant decline in profitability, with net income dropping 45% to $1.48 billion from $2.7 billion a year ago. Despite this setback, the company managed to increase its revenue by 2% to $25.5 billion, surpassing Wall Street expectations.The decline in profit is attributed to several factors, including price cuts, increased competition, and a global slowdown in electric vehicle (EV) demand. Tesla’s automotive revenue, which is its core business, fell by 7% to $19.9 billion. However, the company’s energy storage and generation business saw a remarkable 100% increase in revenue, reaching $3.01 billion.In response to these challenges, Tesla has been offering discounts and low-interest loan options to stimulate demand. The company’s vehicle deliveries decreased by 5% to around 444,000 units, which was still better than expected. Tesla’s stock reacted negatively to the earnings report, with shares falling between 3% to 6% in after-hours trading.Looking ahead, Tesla announced plans to start production of new, more affordable vehicle models in the first half of 2025. CEO Elon Musk also confirmed that the company will unveil its self-driving robotaxi, dubbed ‘Cybercab’, on October 10. Musk continues to emphasize Tesla’s focus on artificial intelligence and autonomous driving technologies, seeing them as key to the company’s future growth.Despite the current challenges, Tesla remains committed to cost reduction efforts and the development of AI-enabled products. The company expects to increase car production in the current quarter and aims to achieve profitability with its new Cybertruck by the end of the year. However, analysts are urging the company to deliver concrete results, particularly with the delayed launch of its robotaxi and humanoid robot projects.
Key points
- Tesla’s Q2 profit fell 45% to $1.
- The company plans to unveil its self-driving robotaxi ‘Cybercab’ on October 10.
- Tesla announced plans to start production of more affordable vehicle models in the first half of 2025.
- The energy storage and generation business saw a 100% increase in revenue.
48 billion, while revenue grew 2% to $25.
5 billion.
Contradictions👾Some sources reported Tesla’s stock falling by 3-4% in after-hours trading, while others mentioned a 6% drop.
This discrepancy might be due to different reporting times or market volatility.
