Tesla Faces Financial Struggles as Q2 Earnings Fall Short, Musk Predicts Difficult Times Ahead
Tesla’s financial struggles persisted into the second quarter, with the electric vehicle manufacturer reporting earnings that fell short of Wall Street’s expectations. The company reported adjusted earnings per share of $0.40, a slight miss compared to the anticipated $0.42. Furthermore, operating income was reported at $923 million, significantly lower than the expected $1.23 billion.
Revenue took a hit as well, falling 12% year-over-year to $22.50 billion, which failed to meet the consensus estimate of $22.64 billion. Tesla’s automotive revenue experienced a 16% drop as global vehicle deliveries for Q2 numbered 384,122, marking a 13.5% decline from the previous year. Tesla’s CEO, Elon Musk, cautioned investors to brace for potentially “rough quarters” in the future, attributing this to the expiration of federal EV tax credits and the rise of competitors.
The earnings report underscored Tesla’s growing reliance on regulatory credit sales, which saw a decrease from $890 million a year earlier to $439 million. Musk’s controversial stint during the Trump administration and the burgeoning competition from Chinese EV manufacturers like BYD have also added to the company’s performance pressures.
Source: CNBC