Tesla reported a 45% decrease in net income for the second quarter of this year compared to the same period last year. Despite implementing price cuts and offering low-interest financing, the company's global electric vehicle sales saw a decline. The company's revenue for the quarter stood at $1.48 billion, down from $2.7 billion in the second quarter of 2023, marking a second consecutive quarterly decline in net income.
Although Tesla's revenue for the quarter increased by 2% to $25.5 billion, surpassing Wall Street estimates, the company's earnings per share of 52 cents fell short of analyst expectations of 61 cents. Following the earnings report, Tesla's shares dropped by about 8% in after-hours trading.
Tesla sold 443,956 vehicles in the second quarter, a 4.8% decrease from the same period last year. This figure, although better than analysts' expectations, indicates a weakening demand for Tesla's existing product lineup. The company's gross profit margin also declined to 18%, down from 18.2% a year ago.
CEO Elon Musk highlighted the company's record quarterly revenue, attributing it to a challenging operating environment. Tesla's energy-storage business generated over $3 billion in revenue, doubling the amount from the previous year.
Musk reiterated his vision of Tesla as an autonomous vehicle, robotics, and artificial intelligence company. He mentioned that Tesla's 'Full Self Driving' system is expected to operate without human supervision by the end of this year, although he acknowledged past over-optimism in his predictions.
Despite regulatory scrutiny and safety concerns, Musk remains optimistic about the potential of self-driving vehicles to drive growth for Tesla. The company is also working on the development of the Optimus humanoid robot, with plans for limited production to begin early next year.
Tesla's revenue from regulatory credits purchased by other automakers doubled to $890 million for the quarter. The company also incurred $622 million in expenses related to restructuring and layoffs during the period.
Tesla indicated that it is poised for future growth through advancements in autonomous vehicles and the introduction of new models. However, the company cautioned that its sales growth may not match the pace achieved in 2023.
