Tesla's 2Q profit falls 45% to $1.48B as sales drop

Tesla's net income for the second quarter fell 45% to $1.48 billion compared to the same period last year, driven by a decline in global electric vehicle sales despite price cuts and low-interest financing. The company's revenue increased by 2% to $25.5 billion, surpassing Wall Street expectations. However, vehicle sales dropped to 443,956 units, a 4.8% decrease from the previous year, indicating weakening demand for Tesla's aging product lineup. For the first half of the year, Tesla sold approximately 831,000 vehicles, significantly below CEO Elon Musk's annual target of over 1.8 million. The gross profit margin also declined to 18%, down from 18.2% a year ago.

Musk discussed the company's "Full Self Driving" system, which is currently being tested but requires human oversight. He postponed the unveiling of the robotaxi until October to make improvements and mentioned plans for limited production of the Optimus humanoid robot next year. Tesla's revenue from regulatory credits reached $890 million, doubling previous amounts, while restructuring costs totaled $622 million due to workforce reductions. The company is navigating between growth phases, focusing on advancements in autonomous vehicles and new models, but cautioned that sales growth may be lower than in 2023. Following the earnings report, Tesla's stock fell about 8%, reflecting investor concerns over the lack of new product details and financial targets.