{"id":74746,"date":"2024-07-24T00:03:59","date_gmt":"2024-07-24T04:03:59","guid":{"rendered":"http:\/\/autosector.com\/?p=74746"},"modified":"2024-07-24T00:03:59","modified_gmt":"2024-07-24T04:03:59","slug":"teslas-2q-profit-falls-45-to-1-48-billion-as-sales-drop-despite-price-cuts-and-low-interest-loans","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=74746","title":{"rendered":"Tesla’s 2Q profit falls 45% to $1.48 billion as sales drop despite price cuts and low-interest loans – Autoblog"},"content":{"rendered":"

DETROIT \u2014 Tesla’s<\/a> second-quarter net income fell 45% compared with a year ago as the company’s global electric vehicle<\/a> sales tumbled despite price cuts and low-interest financing.<\/p>\n

The Austin, Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. It was Tesla’s second-straight quarterly net income decline.<\/p>\n

Second quarter revenue rose 2% to $25.5 billion, beating Wall Street estimates of $24.54 billion, according to FactSet. Excluding one time items, Tesla made 52 cents per share, below analyst expectations of 61 cents.<\/p>\n

Earlier this month Tesla said it sold 443,956 vehicles from April through June, down 4.8% from 466,140 sold the same period a year ago<\/a>. Although the sales were were better than the 436,000 that analysts had expected, they still were a sign of weakening demand for the company\u2019s aging product lineup.<\/p>\n

For the first half of the year, Tesla has sold about 831,000 vehicles worldwide, far short of the more than 1.8 million for the full year that CEO Elon Musk<\/a> has predicted.<\/p>\n

The company\u2019s widely watched gross profit margin, the percentage of revenue it gets to keep after expenses, fell once again to 18%. A year ago it was 18.2%, and it peaked at 29.1% in the first quarter of 2022.<\/p>\n

Tesla said it posted record quarterly revenue \u201cdespite a difficult operating environment.\u201d The company\u2019s energy-storage business took in just over $3 billion in revenue, double the amount in the same period last year.<\/p>\n

Shares of Tesla fell 4% in trading after Tuesday’s closing bell. The shares had been down more than 40% earlier in the year, but have since recovered most of the losses.<\/p>\n

Revenue from regulatory credits purchased by other automakers who can\u2019t meet government emissions<\/a> targets hit $890 million for the quarter, double Tesla\u2019s amount of most previous quarters.<\/p>\n

The company reported $622 million in \u201crestructuring and other\u201d expenses for the quarter, when it laid off over 10% of its workforce.<\/p>\n

Tesla said in a note to investors that it\u2019s between two major growth waves, with the next one coming through advances in autonomous vehicles<\/a> and new models. But the company reiterated caution that its sales growth \u201cmay be notably lower than the growth rate achieved in 2023.\u201d<\/p>\n

The company said plans for new vehicles<\/a>, including more affordable models, are on track for production to start in the first half of next year. Tesla has hinted at a smaller model costing around $25,000. The models are to be built using some aspects of current vehicles and others from the next-generation underpinnings.<\/p>\n

The company said average selling prices for its Models S<\/a>, X, 3 and Y all dropped due to the price cuts and financing offers. It also said that the Cybertruck<\/a> became the best selling electric pickup in the U.S. during the quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"

DETROIT \u2014 Tesla’s second-quarter net income fell 45% compared with a year ago as the company’s global electric vehicle sales tumbled despite price cuts and low-interest financing. The Austin, Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. […]<\/p>\n","protected":false},"author":1,"featured_media":74747,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3],"tags":[],"class_list":["post-74746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-design-concepts"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74746"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74746\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/74747"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74746"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}