Constellation Research founder R Ray Wang analyzes Tesla and Google at Varney & Co.
Tesla Inc. on Tuesday reported second-quarter profit margins that fell short of analysts’ expectations as the company ramps up efforts in self-driving technology while price cuts and incentives to stimulate sluggish demand continued to weigh on profits.
Tesla’s second-quarter auto gross margin excluding regulatory deductions was 14.65%, beating expectations of 16.29%, according to 20 analysts surveyed by Visible Alpha.
That was the company’s smallest quarterly profit margin in more than five years, and sent the electric-car maker’s shares down about 4% in after-hours trading.
Tesla Cybertruck hits the roads
Tesla’s quarterly profit margin fell short of analyst expectations. (Photo by Costfoto/NurPhoto via Getty Images)
The results were a reminder of the headwinds Tesla faces in its core auto business, even as CEO Elon Musk’s pivot to self-driving technology has helped the company’s shares recoup much of its losses this year.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 246.38 | -5.13 | -2.04% |
The company said on Tuesday it had revenue of $25.5 billion for the three months to June, down from $24.93 billion a year earlier. Analysts on average expected $24.77 billion, according to LSEG data.
Elon Musk says Tesla postponed robotaxi event due to ‘significant design changes’
Tesla says it is on track to develop its new vehicles for 2025. (Photo: Joe Raedl/Getty Images/Getty Images)
Tesla’s regulatory credit sales nearly tripled to $890 million in the second quarter from the same period a year ago.
Tesla said in a statement that “plans for new vehicles, including more affordable models, remain on track to start production in the first half of 2025.”
Tesla reiterated that cost savings on new cars will be smaller than expected.
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Second-quarter net income was $1.48 billion, down from $2.7 billion in the same period last year.
Adjusted earnings per share were 52 cents, below the Wall Street consensus estimate of 62 cents calculated by LSEG.
