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Key Takeaways
- Tesla reported second-quarter profits fell 45% from a year ago, despite a 2% bump in revenue.
- The electric vehicle maker said the average selling price for its vehicles fell compared to last year, while costs from its projects in the artificial intelligence space rose.
- Tesla did not provide a new date in the earnings report for its robotaxi debut event, after CEO Elon Musk said last week that it has been delayed.
Tesla ( TSLA ) reported second-quarter profits dropped 45% from a year ago, as costs for development of artificial intelligence (AI) projects rose, while the average sale price of its vehicles fell.
The drop in profits came despite a 2% bump in revenue from last year to $25.5 billion, above the $24.98 billion analysts had expected , according to estimates compiled by Visible Alpha.
Lower average sale price and lower delivery numbers than the company reported in the second quarter of 2023 impacted the EV giant’s profitability, with a reported $1.48 billion in profit, down from $2.7 billion last year and below estimates.
Tesla Focuses on Cutting Costs, Development of Robotaxi, Lower-Cost Models
Tesla said it has a number of key areas of focus on going forward, including reducing the average cost per vehicle, along with developing projects in the AI space like its robotaxi and humanoid robots, which CEO Elon Musk recently said will be in “low production” and working in Tesla factories by next year. The company also said its plans to begin producing a “more affordable” vehicle by the first half of 2025 remain on track.
Investors will be watching the company’s earnings call later Tuesday to see if Tesla provides a new date for the debut of its robotaxis after Musk said last week that the event has been delayed from its initial date of Aug. 8.
“Though timing of Robotaxi deployment depends on technological advancement and regulatory approval, we are working vigorously on this opportunity given the outsized potential value,” the company said in its earnings release.
Tesla shares were down 4.4% to $235.49 in extended trading as of 5:10 p.m. ET Tuesday following the release, after falling 2% in the day’s full trading session.