Elon Musk’s electric vehicle maker posted the worst quarterly sales decline in more than a decade and profit that missed Wall Street targets, but its profit margin on making cars was better than many feared. Tesla shares were down 2.6% in after-hours trading.
Tesla Chief Financial Officer Vaibhav Taneja said on a call with investors that production of the cheaper car would ramp up next quarter, slower than initially expected, and the company did not provide an update on its full-year deliveries forecast.
The second straight quarterly revenue drop, with a 12% fall, comes despite rolling out a refreshed version of its best-selling Model Y SUV that investors had hoped would help revive demand.
Revenue fell to $22.5 billion for the April-June quarter from $25.50 billion a year earlier. Analysts on average were expecting revenue of $22.74 billion, according to data compiled by LSEG. Adjusted profit per share of 40 cents lagged the consensus of 43 cents per share.
Tesla global deliveries dropped 13.5% in the second quarter, which was below Wall Street targets.
The company said it continued to expect volume production of its custom-built robotaxi - called the Cybercab - and Semi truck in 2026.
Investors are concerned about whether Musk will be able to devote enough time and attention to Tesla after he locked horns with President Donald Trump by forming a new political party this month. He had promised weeks earlier that he would cut back on government work and focus on his companies.
A series of high-profile executive exits, including a longtime Musk confidant who oversaw sales and manufacturing in North America and Europe, is also adding to the concerns. - Reuters
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