Tesla reported a 45% decline in net income in the second quarter of 2024, falling to $1.48 billion from $2.7 billion the previous year. This drop occurred despite a 2% increase in revenue to $25.5 billion, surpassing Wall Street estimates, AP News reports.
Tesla’s net income decline was attributed to reduced global electric vehicle sales. The automaker sold 443,956 vehicles in the quarter, a 4.8% decrease from the previous year, falling short of CEO Elon Musk’s annual sales target of 1.8 million. Meanwhile, the company’s energy-storage business saw significant growth, with revenue doubling to over $3 billion. The company’s gross profit margin decreased to 18%, down from 18.2% a year ago.
Musk’s ambitious plans for Tesla’s “Full Self Driving” system and a robotaxi unveiling were postponed, with limited production of the Optimus humanoid robot expected to begin early next year. Musk also indicated a new affordable vehicle could be available in the first half of 2025 and delayed a decision on a new factory in Mexico due to potential tariffs. Tesla’s stock dropped about 8% following the earnings report, reflecting investor disappointment.
