For a long time, Tesla was able to easily sell every electric car it built, but the market cooled off – and the competition became stronger. Elon Musk’s company is feeling the effects.
Electric car pioneer Tesla has closed the second quarter in a row with a significant decline in profits. In the months March to June, the company led by tech billionaire Elon Musk earned around 1.48 billion dollars (1.36 billion euros) – 45 percent less than a year earlier.
Meanwhile, sales rose by two percent to 25.5 billion dollars (23.5 billion euros). This was mainly due to the growing energy and power storage business, which doubled to three billion dollars. In the car business, revenues fell by seven percent to around 19.9 billion dollars (18.3 billion euros). Tesla shares fell by around three percent in after-hours trading.
The electric car manufacturer, which for a long time was able to sell every vehicle it built, is feeling the effects of the cooling market and increasing competition from other manufacturers. In the second quarter, deliveries fell by almost five percent to just under 444,000 electric cars. However, this was even better than analysts expected.
Last year, Tesla delivered a total of around 1.8 million vehicles. There has not yet been a concrete forecast for this year. Musk plans to introduce a robotaxi soon, but it will probably not hit the streets until much later. There is uncertainty about Tesla’s plans for a cheaper model that could boost sales.
Source: Stern
