Tesla’s profits slip 16%, despite the pivot of Elon Musk to its companies: NPR

Tesla reported on Wednesday a drop in its profits in the second quarter, while the problems of the electric vehicle manufacturer continue despite the CEO Elon Musk pivot focus on your businesses after its controversial role Directing the cost of reducing the government of the Trump administration government.

Sales of electric vehicles of the company pointed out, and earlier this month, he reported a drop of 13.5% During the quarter, compared to the same period a year ago. On Wednesday, Tesla said that its net profit had also suffered, falling in 16% in annual shift.

Pale in relation to The drop of 71% In one year on the other, the company said in the first quarter when sales fell 13%.

But during a call Wednesday evening with analysts, the company reported a difficult perspective for income from electric vehicles. Tesla financial director Vaibhav Taneja provides for a drop in income due to changes in vehicle regulation that were part of the tax and expenses that President Trump Signed by the law this month. These regulations have provided a source of income for Tesla because competitors who could not achieve the fuel economy targets could pay Tesla for “regulatory credits“Instead of paying fines; the new law eliminates fines.

In addition, new and used EV tax credits will end on September 30.

“The only major bill has many changes that would affect our short-term business,” he said when calling on the results.

“If you are in the United States and you are looking to buy a car, place your order now because we may not be able to guarantee the delivery of orders placed in the later part of August and beyond,” he said.

Taneja said plans to increase the production of a vehicle at a lower cost were slowed down while the company rushed to respond to a bump expected in demand before the end of the subsidies.

Musk said that society was in “a strange transition period when we are going to lose a lot of incentives in the United States” and predicted “we could probably have some difficult neighborhoods. I am not saying that we will do it, but we could”.

In order to launch a projector beyond the sales of cars, in its report on the results, the company called the second quarter “a founding point in the history of Tesla: the beginning of our transition from the management of the electric vehicle and the renewable energies industries to also become an AI, robotics and related services”.

The company deployed the First iteration of its Robotaxi service In Austin in June, and the profits report said that the company’s approach to service would allow rapid scaling and better profitability. The company also develops a Humanoid robot called Optimus.

In the call, Musk said Tesla obtained regulatory authorization to extend autonomous driving from Arizona, Florida, Nevada and the San Francisco Bay region, and he made a daring prediction on future expansion.

“I think we will probably have an autonomous journey originating in probably half of the United States population by the end of the year. This is at least our objective subject to regulatory approvals,” he said.

Musk did not explain how the company planned to get up so quickly from a limited trial zone in a city of around 1 million people in half of the American population.

During the second quarter, Tesla’s total turnover slipped by 16%, while the energy generation and storage income was reduced by 7%. Services and other income increased by 17%.

Spectators have Blamed car sales in Tesla signulation On Musk’s political activityalthough during the Previous quarter call He said that he had not seen “any reduction in demand” and, without evidence, rejected demonstrations Against his business as “paid”.

Surveys have found that the company The reputation of the brand took a hitParticularly among buyers of liberal cars or democrats – who tend to be more likely, at least, to buy an electric vehicle. Musk moved away from his management of Doge and had a Very public separate with Donald TrumpBut he remains interested in politics, recently floating the idea of launch of a third party.

Another probable factor is increased competition between electric vehicle manufacturers. In the United States, traditional car manufacturers – which were far behind Tesla on electric vehicles – is gradually eating in the domination of the Tesla market. According to the latest COX data, Tesla represents 46.2% of sales of electric vehicles in the United States; This figure was formerly Almost 80%. GM now controls 13% of this market.

Worldwide, in the meantime, Chinese electric vehicle manufacturers are ascending.

Thomas Monteiro, principal analyst at Investing.comsaw a silver lining in the last gains, including the deterioration of the margins which “seems to have arrived at the lower end of the curve”.

“Although still far from what the fundamentals would suggest for a business of billions of dollars, Tesla’s latest figures arouse certain optimism, indicating that the worst is probably behind, at least in terms of automatic basis,” he wrote in a note.

Tesla, who has long known For a high turnover rate, lost Three senior leaders in the past two months.

The company too Worried investors Earlier this month, when he did not announce his annual shareholder meeting. Tesla is formed in Texas, where the law of the State obliges the company to hold the meeting within 13 months following the previous one. This meant a deadline of July 13.

On July 9, without any word from Tesla on the meeting, a group of major shareholders sent Tesla board of directors a letter raising concerns about surveillance. A day later, the company announced that it was pushing its annual meeting Back to November.

Tesla’s course of action has slightly dropped the exchanges after the opening hours after the news.