Tesla Profits Continues to Fall for the Second Quarter of 2024
- by techtimes
- Jul 24, 2024
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Published Jul 24, 2024 7:40AM EDT
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The EV pioneer is reportedly delaying the introduction of its robotaxi until October to build more car prototypes. This information was revealed just weeks before Tesla released its second-quarter financial report.
Following CEO Elon Musk's announcement of the August 8 date, Tesla's market capitalization increased by more than $257 billion. Expectations sparked an 11-day surge in prices. But when Bloomberg News disclosed Tesla's robotaxi delay, the EV manufacturer's stock dropped more than 8% on Thursday.
Although privately, Tesla did not publicly admit the delay. Since Musk's second "master plan" for the company eight years ago, it has been creating an autonomous taxi service. A less expensive electric car than the Model 3 sedan, this project was just given priority by Musk.
For more than ten years, Musk has promoted Tesla's Full Self-Driving (FSD) product, charging thousands of dollars. Despite FSD's assertions to the contrary, driver supervision is still necessary for autonomous Teslas. Since Tesla's car sales have decreased, Musk and his senior engineering team have grown more excited about FSD.
Elon Musk has long observed Tesla proprietors making money by using their self-driving cars to pick up and drop off individuals. His business is testing out a ride-hailing function on its app.
Tesla described the next robotaxi in its earnings report as "purpose-built," a word used in the autonomous vehicle industry to describe cars built from the ground up to be self-driving and devoid of pedals and steering wheels.
Weeks after the Robotaxi event, Musk announced the termination of almost 10% of Tesla's global workforce, emphasizing the company's autonomous focus.
Tesla Disappoints
Tesla disappointed price-fall speculators a few weeks earlier with a better-than-expected delivery report. According to S3 Partners, short sellers lost $3.5 billion when the company's shares increased 17% during the two trading days following the release of the second quarter results.
Tesla's stock increased 73% from its annual low in April. According to CNBC, 97 million shares, or 3.5% of Tesla's float, are short and are worth $22.4 billion.
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