In a twist worthy of a sci-fi thriller, Tesla’s shares took a nosedive, dropping more than 8% in premarket trading. The electric car giant, helmed by the enigmatic Elon Musk, unveiled its second-quarter earnings, and let’s just say, the numbers didn’t exactly electrify Wall Street.
Despite being the titan of EVs in the U.S., Tesla’s automotive revenue shrank by 7% year-on-year in the June quarter, hitting $19.9 billion. Meanwhile, its adjusted earnings margin also took a hit. The company’s been slashing prices left and right, dangling discounts and incentives in front of potential buyers, all while grappling with a slowdown in sales and fierce competition, particularly from China.
The stock market hasn’t been kind to Tesla this year either. Shares are down nearly 1% to date, while the S&P 500 has been soaring, up more than 16%. It’s a tough crowd out there, even for Musk.
Tesla’s still the undisputed king of electric vehicles in the U.S., but it’s facing a growing army of rivals. The competition, along with Musk’s polarizing commentary, has been chipping away at its market share. The company’s lineup of sedans and SUVs is starting to show its age, and investors are getting restless.
The bulls and bears have been locked in a fierce tug-of-war over Tesla’s stock. Some are convinced that the company’s core car business is in for a rough ride, while others cling to Musk’s futuristic promises of autonomous driving, AI, and robotaxis.
One of the hot topics on everyone’s mind is when Tesla will roll out a new mass-market car to revitalize its lineup. Musk assured investors on Tuesday’s earnings call that an “affordable” car is on track for delivery in the first half of next year. But, as always with Musk, the devil is in the details—or lack thereof.
Robotaxis were another major focus of the call. Musk envisions a future where Tesla owners can turn their cars into autonomous Uber-style ride-hailing vehicles. When pressed on when we might see the first robotaxi hit the streets, Musk quipped, “I would be shocked if we cannot do it next year.”
However, Musk has a track record of bold promises and shifting timelines. On Tuesday, he postponed Tesla’s much-anticipated robotaxi event to October, having previously slated it for August. His reason? “I wanted to make some important changes that I think would improve the vehicle,” he explained, cryptically adding that Tesla would “show up a couple of other things.” What exactly those “things” are, remains anyone’s guess.
As the dust settles, one thing’s clear: Tesla’s journey is anything but predictable. And with Musk at the helm, it’s bound to be a wild ride.
(Source: Tesla Earnings | Associated Press)
