Tesla profits slide 16%, despite Elon Musk’s pivot back to his companies : NPR
A vehicle of sports utility Model X 2023 is outside a Tesla dealership on Sunday, June 18, 2023 in Englewood, colo.
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David Zalubowski / AP
Tesla reported a drop in its profits on Wednesday during the second quarter, while the electric vehicle manufacturer continues to fight despite the fact that CEO Elon Musk pivot focus on your businesses after its controversial role Directing the cost of reducing the government of the Trump administration government.
Sales of electric vehicles of the company pointed out, and earlier this month, he reported a drop of 13.5% During the quarter, compared to the same period a year ago. On Wednesday, Tesla said that its net profit had also suffered, falling in 16% in annual shift.
Pale in relation to The drop of 71% In one year on the other, the company said in the first quarter when sales fell 13%.
Tesla will appeal with investors this evening to discuss the report, which highlighted the other Tesla companies, calling this quarter “a founding point in Tesla’s history: the start of our transition from the management of the electric vehicle and renewable energy industries to also become an AI leader, robotics and related services”.
The company deployed the First iteration of its Robotaxi service In Austin in June, and the profits report said that the company’s approach to service would allow rapid scaling and better profitability. The company also develops a Humanoid robot called Optimus.
During the second quarter, Tesla’s total turnover slipped by 16%, while the energy generation and storage income was reduced by 7%. Services and other income increased by 17%.
Spectators have Blamed car sales in Tesla signulation On Musk’s political activityalthough during the Previous quarter call He said that he had not seen “any reduction in demand” and, without evidence, rejected demonstrations Against his business as “paid”.
Surveys have found that the company The reputation of the brand took a hitParticularly among buyers of liberal cars or democrats – who tend to be more likely, at least, to buy an electric vehicle. Musk moved away from his management of Doge and had a Very public separate with Donald TrumpBut he remains interested in politics, recently floating the idea of launch of a third party.
Another probable factor is increased competition between electric vehicle manufacturers. In the United States, traditional car manufacturers – which were far behind Tesla on electric vehicles – is gradually eating in the domination of the Tesla market. According to the latest COX data, Tesla represents 46.2% of sales of electric vehicles in the United States; This figure was formerly Almost 80%. GM now controls 13% of this market.
Worldwide, in the meantime, Chinese electric vehicle manufacturers are ascending.
Tesla, who has long known For a high turnover rate, lost Three senior leaders in the past two months.
The company too Worried investors Earlier this month, when he did not announce his annual shareholder meeting. Tesla is formed in Texas, where the law of the State obliges the company to hold the meeting within 13 months following the previous one. This meant a deadline of July 13.
On July 9, without any word from Tesla on the meeting, a group of major shareholders sent Tesla board of directors a letter raising concerns about surveillance. A day later, the company announced that it was pushing its annual meeting Back to November.
Tesla’s course of action has slightly dropped the exchanges after the opening hours after the news.
