Tesla has reported a 12 percent revenue decline and a drop in net income during its latest earnings report. CEO Elon Musk warned of potentially rough quarters ahead. The company's share price fell more than nine percent following the report, marking an overall decline of nearly 25 percent this year. Tesla's brand has suffered due to Musk’s political involvement, and competition has intensified, particularly from BYD. Sales efforts, including discounts on the Model Y, have impacted profit margins, and the Cybertruck has seen only 4,306 units sold in the second quarter.
Tesla raked in just $1.2 billion in net income, a decline from $1.4 billion last year. Revenue shrank by 12 percent from $25.5 billion to $22.5 billion, marking the worst quarterly drop in sales in over a decade.
Tesla shares fell by over nine percent following the earnings report, despite previously rallying nearly 50 percent since hitting a year-low in April. Overall, stock is down nearly 25 percent this year.
Elon Musk indicated that Tesla could face a few rough quarters. The brand has been damaged due to Musk’s involvement in far-right politics and growing competition from companies like BYD.
In the second quarter, Tesla sold just 4,306 Cybertrucks, representing a 50 percent drop, indicating challenges in reviving its aging vehicle lineup despite massive discounts and new financing deals.
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