Tesla’s profit drops 16 percent to $1.2 bln on lower auto sales
NEW YORK
(FILES) An aerial view shows cars parked at the Tesla Fremont Factory in Fremont, California on February 10, 2022
Tesla reported another drop in quarterly profits on lower auto sales amid intensifying electric vehicle competition.
Tesla reported second-quarter profits of $1.2 billion, down 16 percent from the year-ago level.
Revenues fell 12 percent to $22.5 billion.
Results were also impacted by a fall in average vehicle selling prices and higher operating expenses driven by AI and other research and development projects.
Tesla did not offer an outlook on full-year vehicle production, citing shifting global trade and fiscal policies.
The results come on the heels of Tesla's launch last month of a robotaxi service in the Texas capital Austin, Musk's first fully autonomous offering after pushing back the timeframe many times.
Musk has heavily touted Tesla's autonomous driving program.
But analysts have criticized Tesla's sluggishness in unveiling new autos, while questioning Musk's commitment to an earlier goal of launching a state-of-the-art electric vehicle priced at around $25,000 to bolster the odds of mass deployment.
Tesla said "we continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025."
The worsening near-term outlook for EV sales is one reason analysts at JPMorgan Chase call Tesla's stock price "completely divorced from increasingly deteriorating fundamentals."
But analysts at Morgan Stanley rate the company a "top pick" in light of its leadership in robotics and artificial intelligence, although a recent note warned Musk's political activity "may add further near-term pressure" to shares.
