Tesla (TSLA) suffered a second consecutive set of disappointing quarterly results, with its profits falling in Q2 following a similar drop in Q1. The electric carmaker’s profits fell by 45% in the latest quarter. The fall came as it lowered its prices to try and generate more demand in a slow market. Despite revenue climbing modestly to $25.5bn, profits for Q2 fell to $1.5bn.
Tesla Profits Keep Falling in Q2
These results caused an immediate impact on the market, as the TSLA price fell by more than 4% in after-hours trading on the NASDAQ exchange. It’s still the most valuable car manufacturer on the planet, but TSLA’s warnings about lower growth this year have been followed by moves to offer cheaper financing and lower prices.
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It is the first time in more than ten years that TSLA has suffered falling sales in back-to-back quarters. While there is a global drop in electric vehicle sales, a company statement said:
We believe that a pure EV is the optimal vehicle design and will ultimately win over consumers as the myths on range, charging and service are debunked.
Much of the hope for the future comes from claims by owner Elon Musk that TSLA will be increasing the speed of its development of a lower-cost vehicle that could be launched in 2025. A greater use of artificial intelligence is another innovation promised by Musk, with the Optimus robots set to work in the company’s factories starting next year. These humanoid workers have already begun carrying out some tasks in the factories, such as handling batteries.
