Tesla published its second quarter earnings report, in which the company said it earned $1.48 billion in net income on $25.5 billion in revenue. That represents a 2 percent increase year over year compared to $24.9 billion in revenue in Q2 2023 but a 45 percent drop in net income.
Tesla’s gross margins were in the spotlight again, as bullish investors hoped to see improvements after years of steady decline. Rampant price cutting and cooling demand as well as cheaper financing have pushed the company’s once-vaunted margins to their lowest point in six years.
It has unquestionably been a whiplash of a quarter for the company. Tesla abandoned its plan to build a more affordable “Model 2” vehicle — and then recommitted to it. Musk announced a robotaxi reveal event for August but then delayed it until October. The company embarked on a massive series of layoffs, including the entire Supercharger team, and then hired many people back. Tesla’s advanced driver-assist technology came under harsh scrutiny after a previous recall failed to prevent driver misuse. And Tesla shareholders again approved a massive pay package for Elon Musk, after a judge tossed out the first one.
On top of all that, Musk endorsed Donald Trump for president, inserting his companies into a fraught political environment that is likely to have repercussions for Tesla’s sales and brand reputation.
Wow, Elon’s really earning that 45 million billion pay package. 🙄
Edited to fix the number – thanks @RCTreeFiddy@lemmy.world !
Maybe it’s because the Cybertruck is a piece of shit, and so is Elon
I honestly don’t know how their stock hasn’t completely tanked, one clusterfuck after another. Quality is shit, the Cyber Truck is all but finished, CEO is fruity, etc.
And to top it off, they struggle to produce the product. Seems everything is on a waiting list.
Stock valuations are based on Wall Street feefees, not the actual economic performance of a company. Even if said economic performance is shit, it only affects stock prices as much as institutional bankers feel like it should.
It’s basically a casino run by the super rich, and people in the US get their retirements in its chips.
Can Tesla cars still run client-side if when the grift cycle completes and Tesla goes bankrupt?
A friend of mine recently told me that your seat position is stored server-side in case you own multiple Teslas, so if Tesla goes belly up, it’s possible you won’t be able to save your seat settings.
1.4b profit/quarter is just under 6b/year. How did he justify his 57b (ish) compensation package? Are Tesla shareholders morons?
