Why Tesla Is Still Struggling
- by The New York Times
- Jul 24, 2024
- 0 Comments
- 0 Likes Flag 0 Of 5
Image
Elon Musk’s Tesla again suffered from sluggish car sales and the effects of a price war with rivals.
Credit... Haiyun Jiang for The New York Times
Tesla’s doldrums
Elon Musk is an omnipresent figure in the news, given his recent endorsement of Donald Trump — who praised him in return — and his frequent, sometimes inflammatory, posts on his X social network.
But all that attention isn’t translating into success at Musk’s core business, as Tesla reported another sharp drop in quarterly profit that has spooked investors.
Shares in Tesla are down sharply premarket on the company’s results. Profits plunged 45 percent year on year in the second quarter, and the company’s operating margin fell to 6.3 percent from 9.6 percent a year ago. That’s despite Tesla cutting costs and laying off more than 10 percent of its global work force.
Among the troubles bedeviling the company are sluggish consumer demand and a price war with competitors that has dented profits. (The only bright spot was revenue from sales of regulatory credits, which help rivals meet emissions standards. Tesla sold $890 million worth in the quarter, three times the figure in 2023.)
Musk shared more bad news about investors’ biggest hope for Tesla. The company will delay an event meant to reveal the design of its driverless taxi to October, from August. Musk has said that the business could propel the carmaker’s market value to $5 trillion, from its current $785 billion.
The hitches in the robotaxi business come as Alphabet said it would invest an additional $5 billion in Waymo, its autonomous vehicle unit, and General Motors restarted real-world testing for its Cruise automated taxi division.
We are having trouble retrieving the article content.
Please enable JavaScript in your browser settings.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Please first to comment
Related Post
Stay Connected
Tweets by elonmuskTo get the latest tweets please make sure you are logged in on X on this browser.
Sponsored
Popular Post
Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated
28 ViewsJul 29 ,2024