Tesla’s Q2 earnings sink stock

Tesla posted a disappointing second-quarter number after the bell. The producer of electric vehicles did, however, say that it was on track to start making new cars in the first half of 2025, most likely a less costly EV. Furthermore, according to Tesla’s forecast, its growth rate in 2024 will be “notably lower” than its 2023 results.

Tesla’s Q2 revenue of $25.05 billion was slightly higher than the $24.93 billion the company reported a year earlier, compared to the average forecast of $24.63 billion. Tesla announced adjusted EPS of $0.52 on non-GAAP net income of $1.8 billion, as opposed to $0.60

The electric maker’s stock price dropped by more than 8% in after-hours trade. With Tesla’s market capitalization of over $800 billion, such a change would result in a roughly $80 billion swing in the company’s valuation.

Tesla shipped 443,956 cars worldwide in the second quarter, above the 439,302 forecasts made by the street but falling short of the previous year by over 5%. Although the total number of deliveries in Q2 was significantly higher than the 386,810 vehicles delivered in Q1, some analysts expressed concern that the demand for Tesla vehicles was declining.

Elon Musk stated earlier in the year that Tesla would reveal its Robotaxi on August 8. However, after hearing in the media that the launch will take place in October, Musk hinted last week that the automaker would require additional time to implement a redesign.

“Production of new cars, including more reasonably priced models, scheduled to begin in the first half of 2025. According to Tesla’s Q2 earnings report, “These vehicles will be able to be produced on the same manufacturing lines as our current vehicle line-up and will utilize aspects of both our current and next-generation platforms.”

The revelation that Tesla had deployed 9.4 GWh (gigawatt hours) of battery energy storage in the second quarter—its biggest quarterly total ever and more than twice as much as the firm had deployed in the first quarter—in the company’s production and delivery report caught some investors by surprise.

Trade Alert data indicates that Tesla’s shares have decreased following the company’s results announcement in five of the last six quarters.