ALBAWABA - Due to the impact of price reduction while investing heavily on artificial intelligence and other technologies, Tesla revealed a severe decline in earnings for the second quarter on Tuesday. The company's net income dropped by 45% to $1.48 billion.
To encourage demand, Tesla provided discounts and other incentives, such as subsidized financing arrangements, in China and the United States throughout the quarter, causing the company's adjusted profits margin to drop from 18.7% in the second quarter of 2023 to 14.4% as a result of such agreements while hurting its profitability, as per CNBC.
On the other hand, the energy production and storage division of Tesla, which deploys and supplies large backup batteries for utility, commercial, and residential usage, saw nearly double the amount of revenue in the same period last year, reaching just over $3 billion, with the carmaker claiming that its Powerwall and Megapack "achieved record deployment."
“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025,” Tesla said in its Q2 report, adding that these vehicles “will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up.”
According to statistics compiled by Cox Automotive, InsideEVs notes that rival manufacturers witnessed a 33% year-over-year increase in completely electric car sales in the United States during the first half of 2024, while Tesla's sales fell by 9.6% during the same period.
According to the report, the Cybertruck is on pace to "achieve profitability" by the end of the year, with production having more than quadrupled from Q1 levels, with manufacturing at Tesla's Semi factory anticipated to commence by the end of 2025.
During the conference call, CEO Elon Musk also said that, contrary to the initial August 8th date, Tesla will introduce its Robotaxi on October 10th. Musk said that Tesla will be able to add "a couple other things" to the Robotaxi before it was unveiled thanks to the additional time.
