Tesla Misses Profit Forecasts but Sells More Cars in Q2
Tesla reported negative free cash flow of $1.1 billion as capital spending doubled to $5.8 billion for AI and robotics projects.
- Tesla reported $1.11 billion in net income on $28.2 billion in revenue for the second quarter, missing Wall Street's $1.9 billion profit expectation; shares dropped 1.3% at market close on Wednesday.
- Capital expenditures surged 142% to $5.7 billion as the Company accelerated infrastructure spending for AI-powered self-driving technology and Optimus, marking negative free cash flow of $1.1 billion.
- Despite record deliveries of 480,126 vehicles, Automotive gross margins fell to 16.3% versus the 18.04% Analysts expected, while Regulatory credit revenue plummeted to $146 million.
- Tesla CEO Elon Musk told investors the company aims to spend more than $25 billion this year on self-driving technology and Optimus, though concerns persist about monetisation timelines.
- Speculation surrounding a potential Tesla-SpaceX merger resurfaced at the earnings call, though senior vice president Ryan Lee at Direxion said "Monetisation remains the central concern following the earnings miss.
23 Articles
23 Articles
Tesla sold 25% more cars and made 57% less operating profit. The AI spending is the reason.
Tesla delivered 480,126 vehicles in the second quarter, its highest-ever quarterly total, and generated record revenue of $28.24 billion, up 26% year-on-year. Operating income fell 57% to $398 million. Adjusted earnings of 33 cents per share missed the 51-cent consensus by a wide margin. Shares fell roughly 4% after hours. The gap between the top […] This story continues at The Next Web
The American carmaker Tesla increased its sales in the second quarter by 26 percent year-on-year to $28.24 billion (roughly 600 billion crowns). However, net profit fell by five percent to $1.11 billion and operating profit fell by 57 percent to $398 million. The operating margin decreased to 1.4 percent from last year's 4.1 percent. This follows from the results published by the company on Thursday night. The company belongs to the richest pers…
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