Current:Home > StocksTesla’s 2Q profit falls 45% to $1.48 billion as sales drop despite price cuts and low-interest loans -Ascend Wealth Education
Tesla’s 2Q profit falls 45% to $1.48 billion as sales drop despite price cuts and low-interest loans
View
Date:2025-04-17 00:57:28
DETROIT (AP) — Tesla’s second-quarter net income fell 45% compared with a year ago as the company’s global electric vehicle sales tumbled despite price cuts and low-interest financing.
The Austin, Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. It was Tesla’s second-straight quarterly net income decline.
Second quarter revenue rose 2% to $25.5 billion, beating Wall Street estimates of $24.54 billion, according to FactSet. Excluding one time items, Tesla made 52 cents per share, below analyst expectations of 61 cents.
Earlier this month Tesla said it sold 443,956 vehicles from April through June, down 4.8% from 466,140 sold the same period a year ago. Although the sales were were better than the 436,000 that analysts had expected, they still were a sign of weakening demand for the company’s aging product lineup.
For the first half of the year, Tesla has sold about 831,000 vehicles worldwide, far short of the more than 1.8 million for the full year that CEO Elon Musk has predicted.
The company’s widely watched gross profit margin, the percentage of revenue it gets to keep after expenses, fell once again to 18%. A year ago it was 18.2%, and it peaked at 29.1% in the first quarter of 2022.
Tesla said it posted record quarterly revenue “despite a difficult operating environment.” The company’s energy-storage business took in just over $3 billion in revenue, double the amount in the same period last year.
Shares of Tesla fell 4% in trading after Tuesday’s closing bell. The shares had been down more than 40% earlier in the year, but have since recovered most of the losses.
Revenue from regulatory credits purchased by other automakers who can’t meet government emissions targets hit $890 million for the quarter, double Tesla’s amount of most previous quarters.
The company reported $622 million in “restructuring and other” expenses for the quarter, when it laid off over 10% of its workforce.
Tesla said in a note to investors that it’s between two major growth waves, with the next one coming through advances in autonomous vehicles and new models. But the company reiterated caution that its sales growth “may be notably lower than the growth rate achieved in 2023.”
The company said plans for new vehicles, including more affordable models, are on track for production to start in the first half of next year. Tesla has hinted at a smaller model costing around $25,000. The models are to be built using some aspects of current vehicles and others from the next-generation underpinnings.
The company said average selling prices for its Models S, X, 3 and Y all dropped due to the price cuts and financing offers. It also said that the Cybertruck became the best selling electric pickup in the U.S. during the quarter.
veryGood! (242)
Related
- Paige Bueckers vs. Hannah Hidalgo highlights women's basketball games to watch
- Human remains recovered from car in North Carolina creek linked to 1982 cold case: Reports
- Alabama court rules frozen embryos are children, chilling IVF advocates
- Summer House's Carl Radke Shares Love Life Update 6 Months After Lindsay Hubbard Breakup
- Federal hiring is about to get the Trump treatment
- Louisiana governor urges lawmakers to pass tough-on-crime legislation
- Man hurt in crash of stolen car steals ambulance after leaving Virginia hospital in gown, police say
- Bill would let Georgia schools drop property tax rates and still get state aid
- Arkansas State Police probe death of woman found after officer
- Adele reveals why she 'was very annoyed' in viral basketball game meme
Ranking
- Cincinnati Bengals quarterback Joe Burrow owns a $3 million Batmobile Tumbler
- Powerball winning numbers for Feb. 19, 2024 drawing: Jackpot rises to $348 million
- How to watch the 2024 Screen Actors Guild Awards – and why who wins matters at the Oscars
- Walmart is buying Vizio for $2.3 billion. Here's why it's buying a TV manufacturer.
- US appeals court rejects Nasdaq’s diversity rules for company boards
- US appeals court to decide if Pennsylvania mail-in ballots with wrong date still count
- 'That '70s Show' actor Danny Masterson transferred out of maximum security prison
- How Ashlee Simpson Really Feels About SNL Controversy 20 Years Later
Recommendation
Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
Ranking 10 NFL teams positioned to make major progress during 2024 offseason
Sen. Lindsey Graham very optimistic about House plan for border security and foreign aid
Disney on Ice Skater Anastasia Olson Shares Healing Quote One Week After Hospitalization
Stamford Road collision sends motorcyclist flying; driver arrested
Does Portugal Have The Answer To Stopping Drug Overdose Deaths?
Ruby Franke, former '8 Passengers' family vlogger, sentenced on child abuse charges
Enbridge Wants Line 5 Shutdown Order Overturned on Tribal Land in Northern Wisconsin