Tesla’s financial position is getting worse, since the consequences continue from the policy of CEO Elon Musk.
The electric car manufacturer reported on Wednesday that both income and profits fell in the second quarter of the year compared to the previous year. It is the second consecutive negative gain report, which has suffered damage to its brand and has become a lightning rod for street demonstrations.
While Tesla remains the number 1 seller of electric vehicles in the United States by a wide margin, the profit report shows a deteriorated situation without a quick obvious solution for Musk, the richest person in the world.
The income was $ 22.5 billion for the three months that ended on June 30, 12% less than the previous year, while the profits were 40 cents per share, 23% less than the previous year.
Tesla said in a note to investors that the quarter was a “seminal point in the history of Tesla: the beginning of our transition to lead the electric vehicle and renewable energy industries to also become a leader in AI, robotics and related services.”
Musk has angry people throughout the political spectrum this year, first with his hug from the policy of the extreme right and his mandate that he carries the chainsaw as an advisor to President Donald Trump, and then, when he and Trump had a high profile fight. Musk has promised to start a political party, but so far it has not continued visible.
The profit report covers Tesla’s finances for April, May and June, a period that overcame Musk’s mandate in the White House. Musk left his government’s work on May 30.
The actions in Tesla were stable in the negotiation outside the time after the profit report.
Tesla had already warned this month that vehicle deliveries sank, 14% less in the second quarter of the previous year. It was the second consecutive quarter of falling deliveries since Tesla faces not only damage to its brand, but also to increase competition, even manufacturers of Chinese electric vehicles.
Musk has tried to keep shareholders happy with the developments on other fronts, even trying to launch a nascent Robotaxi service in Austin, Texas, although that service is small and still uses human security observers in vehicles. Musk has also promoted humanoid attendees as a future potential product, but none has sent. On Monday, Tesla opened a restaurant and a motorin in West Hollywood, California.
Musk companies are also increasingly intertwined. He merged its application of social networks, X, with its startup of AI, XAI, in March, and its rocket company, Spacex, is an investor in XAI. This month, Tesla began integrating the XAI chatbot, Grok, in Tesla vehicles, days after Grok went to Neonazi diatribes. Musk has said that although he does not support to merge Tesla and XAI, he will put a possible Tesla investment in the company for a shareholders’ vote.
Wall Street analysts hoped that Tesla’s revenues of $ 22.74 billion and profits per share of 43 cents, according to an average estimates compiled by LSE.
Tesla executives, possibly including Musk, are scheduled to hold a telephone conference with analysts at 5:30 PM ET to discuss financial results and their perspective.
The musk is deeply unpopular with the American public, with 58% with an unfavorable vision of it and 33% have a favorable vision, according to an average voting average directed by the Nate Silver statistics writer.
And more protests are on the horizon. Tesla Takedown manifestations continue to occur weekly, and more than 30 “Tesla Takedown” protests are planned for this weekend, according to a public schedule of the events. A demonstration is scheduled for Saturday in the newly open Tesla Denner.
Tesla Takedown, an organization behind many of the protests, took note of the bad financial results on Wednesday and said the company is overvalued.
“Sooner or later, investors will awaken to the truth: Tesla is nothing more than smoke, mirrors and lost deadlines,” the group said in a statement sent by email.
Tesla also faces winds against the winds in Contrae and regulatory. In Miami and Oakland, California, two separate legal procedures examine whether Tesla exaggerated the capacities of their driver assistance software programs, which the company calls automatic and autonomous complete pilot.
Federal regulators of the National Road Traffic Safety Administration are also investigating the complete systems of autonomous Tesla and if they are safe to use in fog and other situations with reduced visibility.
