Electric vehicle-pioneer - Tesla with second profit retreat in a row
The Tesla leader in electric cars reported a significant revenue decline for the second consecutive quarter. The company run by tech billionaire Elon Musk earned approximately 1.48 billion Dollars (1.36 billion Euros) from March to June - 45% less than the previous year.
Revenue grew by 2% to reach 25.5 billion Dollars (23.5 billion Euros). However, this increase was mainly due to the growing energy and energy storage business, which doubled to 3 billion Dollars. In the automotive business, revenues fell by 7% to around 19.9 billion Dollars (18.3 billion Euros). The Tesla stock dropped by around 3% in after-hours trading.
The electric car manufacturer, which used to sell every vehicle built, is now feeling the cooling market and increasing competition from other manufacturers. In the second quarter, deliveries fell by nearly 5% to around 444,000 electric cars. However, this was still better than analysts had expected.
Last year, Tesla delivered around 1.8 million vehicles in total. No concrete forecast has been given for this year yet. Musk is planning to introduce a robotaxi, but it is expected to come significantly later onto the streets. Uncertainty exists regarding Tesla's plans for a more affordable model that could boost sales.
- Despite the decline in revenue in the automobile industry, Elon Musk's Tesla continued to perform well in the Electric car segment, selling approximately 444,000 electric vehicles during the second quarter.
- The revenue decrease in the automobile industry, specifically at Tesla, is likely due to the cooling market and increasing competition from other manufacturers in the Electro industry, such as traditional automobile companies transitioning to electric vehicles.
- The United States of America, being a major market for both the Automobile and Electro industries, has seen a shift towards electric vehicles, with Tesla leading the charge in the Electric car segment.
- Elon Musk, the visionary leader of Tesla in the electric car industry, has announced plans to introduce a robotaxi, which is expected to bolster the company's revenue numbers in the future, but the exact timeline remains uncertain.
