Tesla reports mixed Q2 results as softer demand dents sales

Investing.com -- Tesla reported Wednesday mixed second-quarter results as revenue was held back by softening demand amid backlash against CEO Elon Musk’s political views just as competition continues to intensify. 

Tesla Inc (NASDAQ:TSLA) fell 1% in recent afterhours trading.

Tesla announced earnings per share of $0.4 on revenue of $22.5 billion. Analysts polled by Investing.com anticipated EPS of $0.40 cents on revenue of $22.4B.

The slight beat on the top line comes even as automotive revenue fell 16% in the quarter from a year earlier.

Despite the hit to company’s automotive business, Wall Street remains optimistic on the company’s future plans to lean harder into autonomy, and AI.

“In our view, these favorable FSD-related developments are likely to overshadow any/all negative commentary arising from lower 2025/2026 estimates," Piper Sandler said in a note earlier this week ahead of Tesla’s earnings.

Automotive gross margin, a key metric, rose to 14.96% in Q2 from 12.50% in Q1.

Looking ahead, Tesla said its plans to launch new vehicles in 2025 remain on track, including initial production of a more affordable model in 1H25.

 

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