Tesla’s Q2 Earnings Plunge Amid Brand Fallout, Musk Pushes Ambitious Robotaxi Vision
Tesla’s Q2 Earnings Plunge Amid Brand Fallout, Musk Pushes Ambitious Robotaxi Vision
Tesla Inc. has reported a significant downturn in its second-quarter earnings, with both revenue and profits falling for the second consecutive quarter. The electric vehicle giant announced Wednesday that revenue for the three months ending June 30 plummeted 12% year-over-year to $22.5 billion, while earnings per share dropped 23% to $0.40, missing analyst expectations.
The financial slide comes amid ongoing brand damage attributed to CEO Elon Musk’s political controversies and increasing competition in the EV market. Despite remaining the top EV seller in the U.S., the company faces a deteriorating situation. Following the earnings release, Tesla’s stock price sharply declined by approximately 8% in Thursday morning trading, bringing its total drop to over 36% since its December high.
During a conference call with analysts, Musk emphasized the critical role of autonomy for Tesla’s future, outlining ambitious plans to expand its nascent robotaxi service. He aims to make self-driving Tesla taxis available to half the U.S. population by year-end, targeting California, Arizona, and Florida next, though he acknowledged this depends on regulatory approvals and safety records. Currently, Tesla’s Austin robotaxi service is small-scale and still relies on human safety observers, placing it behind market leader Waymo.
Tesla described the quarter as a “seminal point,” signaling a transition from EV and renewable energy leadership to becoming a leader in AI, robotics, and related services. However, the company continues to grapple with falling vehicle deliveries and a complex regulatory landscape, including investigations into its driver-assistance software. Public disapproval of Musk and persistent “Tesla Takedown” protests further compound the challenges facing the automaker.
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