Electric vehicle giant Tesla Inc. has released its second-quarter financial results. The automaker reported earnings that fell short of Wall Street expectations, marking the fourth consecutive quarter of missed profit estimates.
Tesla announced adjusted earnings of 52 cents per share, below the analysts’ projected 60 cents. However, the company’s revenue surpassed expectations, reaching $25.5 billion compared to the forecasted $24.6 billion. This revenue boost was partly attributed to a significant increase in regulatory credit sales, which more than doubled from the previous quarter to $890 million.
Despite the revenue growth, Tesla’s automotive gross margin, excluding regulatory credits, declined to 14.6% from 16.4% in the first quarter. This drop reflects the impact of recent price cuts implemented to stimulate demand in an increasingly competitive EV market.
CEO Elon Musk used the earnings call to announce a delay in the unveiling of Tesla’s highly anticipated self-driving robotaxi, now scheduled for October 10th. Musk cited the need for important design changes as the reason for the postponement. He also introduced the concept of “unboxed” manufacturing for the robotaxi, describing it as a modular assembly process akin to building with Legos.
In another development, Musk revealed that Tesla has paused its plans for a new factory in Mexico, citing potential tariffs proposed by Republican presidential candidate Donald Trump.
“Trump has said that he’ll put in heavy tariffs on vehicles produced in Mexico, so it doesn’t make sense to invest a lot in Mexico if that is going to be the case,” Musk said during a conference call with investors.
Instead, the company will focus on expanding production at existing facilities and plans to manufacture both the robotaxi and its humanoid robot, Optimus, at its Austin headquarters.
Looking ahead, Tesla maintains its focus on cost reduction and acknowledges a “notably lower” growth rate for 2024. The company expects the next wave of growth to be driven by advancements in autonomous technology and the introduction of new products, including a lower-cost vehicle slated for production in early 2025.
The market’s reaction to the mixed results was swift, with Tesla’s stock falling 7% in after-hours trading.
