Tesla's 2Q Profit Falls 45% To $1.48 Billion

Tesla's second-quarter net income fell 45% compared to a year ago as the company's global electric vehicle (EV) sales tumbled despite price cuts and low-interest financing, Tom Krisher reported for the Associated Press (AP).

The dip in sales is a sign of weakening demand for the company’s aging product lineup. I Photo: Tesla Asia X

The Austin, Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. It was Tesla's second-straight quarterly net income decline.

Second quarter revenue rose 2% to $25.5 billion, beating Wall Street estimates of $24.54 billion, according to FactSet.

Excluding one-time items, Tesla made 52 cents per share, below analyst expectations of 61 cents. Shares of Tesla fell about 8% in trading after Tuesday’s closing bell. The shares had been down more than 40% earlier in the year but have since recovered most of the losses.

Earlier this month, Tesla said it sold 443,956 vehicles from April through June, down 4.8% from the 466,140 sold in the same period a year ago.

Although the sales were better than the 436,000 that analysts had expected, they still were a sign of weakening demand for the company’s aging product lineup. For the first half of the year, Tesla has sold about 831,000 vehicles worldwide, far short of the more than 1.8 million for the full year that CEO Elon Musk has predicted.