Tesla profits drop as Musk warns of rough quarters ahead ...Middle East

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Musk acknowledged short-term challenges but remained optimistic about Tesla’s long-term prospects, particularly in autonomous driving. “We probably could have a few rough quarters,“ he said during an earnings call. “But once you get to autonomy at scale, I’d be surprised if Tesla economics are not very compelling.”

Despite the downturn, Tesla continues to invest in AI and robotics, including its Optimus humanoid robot and autonomous taxi service in Austin. Analysts remain divided, with JPMorgan Chase warning of deteriorating fundamentals while Morgan Stanley maintains Tesla as a “top pick” for its tech leadership.

Tesla shares fell 4.1% in after-hours trading. - AFP

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