Tesla’s shares dropped over 8% in U.S. premarket trading following the release of its second-quarter earnings report, which fell short of market expectations. The electric vehicle giant faced continued challenges in its automotive division.
Key points:
- Automotive revenue declined 7% year-over-year to $19.9 billion in Q2.
- Adjusted earnings margin also saw a decrease.
- Tesla has implemented global price cuts and various incentives to combat slowing sales and increasing competition, particularly in China.
- While still dominating the U.S. electric vehicle market, Tesla is losing market share to competitors.
- This year, the company’s stock performance has lagged behind the S&P 500 index.
Industry analysts are divided on Tesla’s outlook. Some express concern over pressures on its core car business, while others remain optimistic about future developments in autonomous driving, AI, and robotaxis.
During the earnings call, CEO Elon Musk addressed several key points:
- A new “affordable” car is slated for release in the first half of next year.
- Robotaxis were a significant topic, with Musk predicting the first robotaxi ride by next year.
- The company’s robotaxi event has been postponed to incorporate important vehicle improvements in October.
Despite Musk’s ambitious projections, some investors remain cautious, given his history of missed deadlines. The CEO mentioned additional announcements at the upcoming Robotaxi event but did not provide specific details.
