Tesla shares fell 12% on Wednesday after the electric car maker reported second-quarter profit that fell short of expectations.
The company, led by billionaire tech mogul Elon Musk, made revenue of $25.5 billion in the three months from April to June, up 2% from the same period last year.
But despite cost-cutting efforts, including widespread job cuts, Tesla’s net income fell 45% to $1.5 billion in the second quarter of 2024, from $2.7 billion in the second quarter of 2023.
Musk announced plans in April to cut more than 10% of the company’s global workforce.
“As we prepare for our next phase of growth, it is critical that we review all aspects of the company to reduce costs and improve productivity,” he said in a memo to employees at the time.
“As part of this effort, we have overhauled our organization and made the difficult decision to reduce our global workforce by more than 10%,” Musk added.
The lackluster earnings report follows a disappointing first-quarter performance from electric-vehicle maker Tesla, whose net profit fell 55% in the three months from January to March.
But Tesla shares rose following its first-quarter results after Musk said the company plans to bring forward production of smaller, more affordable models.
