Tesla's Profit Plunges to Five-Year Low
Business
American automaker Tesla has reported its lowest profit in the past five years, causing its stock price to fall. For the second quarter, Tesla's net profit was $1.48 billion, half of what it was a year ago and the lowest in five years.
The company's revenue decline is linked to price cuts on vehicles to boost demand and increased spending on artificial intelligence projects. This decision helped in terms of revenue, which stood at $25.5 billion, slightly above analysts' forecasts and last year's figures.
Adjusted earnings per share were $0.52, 17 percent below forecasts. Additionally, Tesla has failed to meet its profit targets for four consecutive quarters.
Bloomberg points out that investors are in a wait-and-see mode, forced to believe in the realization of Tesla's ambitious plans. Tesla promises revolutionary self-driving taxis and humanoid robots, but only in the future. As for cars, the automaker is preparing to fall back to 2023 results.
Adjusted earnings per share were $0.52, 17 percent below forecasts. Additionally, Tesla has failed to meet its profit targets for four consecutive quarters.
Bloomberg points out that investors are in a wait-and-see mode, forced to believe in the realization of Tesla's ambitious plans. Tesla promises revolutionary self-driving taxis and humanoid robots, but only in the future. As for cars, the automaker is preparing to fall back to 2023 results.
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