New sharp decline for Tesla, profits fall 16% in second quarter
The leader in electric vehicles suffers from 12% drops in turnover due to continued consumer flight and the reversal of environmental policies
2' min read
2' min read
Tesla suffers. It posted a further thud in quarterly earnings due to declining car sales, amid growing competition in the electric vehicle sector and persistent negative reactions to CEO Elon Musk's involvement in US politics, marked by his stormy relationship with Donald Trump.
Second quarter profits were $1.2 billion, in line with expectations but down 16% year-on-year. The operating margin fell to 4.1 per cent from 6.3 per cent.
Turnover in turn slipped 12 per cent to 22.5 billion, with the crucial automotive division down 16 per cent. Vehicle deliveries fell 13.5 per cent, hurt by reputational crises in markets where it was once popular, from California to Europe. In China, competition from local rivals is particularly strong. The energy division in turn experienced a 7 per cent drop.
In a statement, the company responded to the decline by emphasising its continued efforts to become a leader in artificial intelligence and robotics in transport and beyond.
"Autonomy is the story," Musk said during the results conference call, underlining his bet on self-driving vehicles for the group's future. The company has christened an experimental robotaxi mini-fleet near Austin, Texas, where it is headquartered, and plans to arrive in San Francisco in the autumn.
