The company said it was on track to produce new vehicles, including more affordable models, in the first half of 2025, although the models will result in achieving less cost reduction than previously expected.

Tesla’s quarterly results

Tesla earnings per share: 52 cents adjusted vs 62 cents expected, per LSEG consensus estimates.

Tesla revenue: $25.50 billion vs. $24.77 billion expected by LSEG

Revenue increased 2% from $24.93 billion a year earlier, Tesla said in an investor deck on Tuesday. But automotive revenue dropped 7% to $19.9 billion from $21.27 billion in the same quarter a year ago. Auto revenue included regulatory credits of $890 million, more than triple the figure from last year.

The company said it “recognized record regulatory credit revenues in Q2,” pointing to the fact that other automakers are “still behind on meeting emissions requirements.”

After a rocky first half of the year that saw Tesla cut more than 10% of headcount, the company reported better-than-expected deliveries for the Q2 earlier this month. However, deliveries were still down from a year earlier for a second straight period.

Tesla’s self-driving technology

Musk has been promising since about 2016 that Tesla will turn its existing EVs into self-driving vehicles with software updates, which the company calls Full Self-Driving. Tesla is separately working on a CyberCab dedicated robotaxi.

On Tuesday’s call, Musk said he doesn’t foresee regulatory hurdles to rolling out Tesla’s self-driving technology to a broad market in the U.S. and beyond.

He also referred to Waymo’s commercial robotaxi services as “limited” and “fragile.” Tesla’s system, he said, should be able to work anywhere in the world, not just in a geographically-limited area.

Competition for Tesla

Tesla remains the top seller of electric vehicles in the U.S. by far, but is losing market share to a growing number of rivals due in part to its aging lineup of sedans and SUVs and the impact of Musk’s incendiary and political commentary.

During the quarter, Tesla offered discounts and other incentives, including subsidized financing deals, in China and the U.S. to spur demand. Those deals hit the company’s profitability, with its adjusted earnings margin falling to 14.4% from 18.7% in the Q2 of 2023.

Musk told analysts on a conference call that new competitors “have discounted their EVs very substantially, which has made it a bit more difficult for Tesla.”

Rival automakers saw a 33% year-over-year jump in fully electric vehicle sales in the U.S. during the first half of 2024, while Tesla sales dropped by 9.6% in that time frame, as per report.

Tesla’s net income

Net income at Tesla declined 45% to $1.48 billion, or 42 cents a share, in the Q2 from $2.7 billion, or 78 cents a share, a year earlier.

During the Q2, Tesla increased production of its newest model EV, Cybertruck which the company now says is “on track to achieve profitability by end of year.”

Capital expenditures in the quarter increased 10% from a year ago to $2.27 billion. The company said it incurred $600 million in expenses for artificial intelligence infrastructure.

Tesla’s Robotaxi

Musk over the years has promoted Tesla as a technology company, most recently saying self-driving technology was key. Tesla said on Tuesday the “timing of Robotaxi deployment depends on technological advancement and regulatory approval.” But Musk said during the conference call, “I don’t think regulatory approval will be a limiting factor.”

Musk said Tesla has delayed the unveiling of its Robotaxi product to Oct. 10 from Aug. 8 to make some important changes to the robotaxi.

Tesla said Cybertruck production “remains on track to achieve profitability by end of year.”

Tesla said it has started validation of its first prototype Cybertruck vehicles using its breakthrough battery manufacturing technology.

Tesla’s stock update

Shares of Tesla have surged more than 30% since June 13, when shareholders voted to approve Musk’s $56 billion pay package that was invalidated by a Delaware court in January. Its shares were also boosted by hopes for robotaxis. Tesla shares are down about 0.5% for the year at Tuesday’s close, while the Nasdaq is up about 20% over that stretch. Tesla share price was down more than 8% in extended trading closing at $227.23.

The post Tesla’s Q2 Earnings: Low Profit Margin, Sales Decline, Stock Falls by 8% appeared first on Industry Leaders Magazine.

Tesla Q2 deliveries were higher-than-expected “greatly assuages concerns regarding softening EV demand,” CFRA Research analyst Garrett Nelson said.

Tesla stock price surge

As per Garrett Nelson, the Tesla stock price continues to ride a wave of positive momentum following its annual meeting in mid-June in which shareholders re-approved Elon Musk’s 2018 compensation plan.

Many feel that the Tesla shares rally and rebound and Q2 delivery figures were viewed by some analysts and investors as a sign of possible improvement ahead of its robotaxi reveal on Aug. 8. There are others who are worried that the EV maker is exhausting its “bag of tricks,” with Tesla going for price cuts and higher incentives.

Rise in Tesla’s Q2 deliveries

Tesla handed over 443,956 vehicles in the three months to June 30, 4.8% lower than a year earlier and up 14.8% from the preceding quarter.

Wall Street on average had expected the company to deliver 438,019 vehicles, according to 12 analysts polled by LSEG. Tesla delivered 422,405 Model 3 and Model Ys, and 21,551 units of other models, which include the Model S sedan, Cybertruck and Model X premium SUV. It produced 410,831 vehicles during the April-June period.

Tesla has been slow to refresh its car lineup at a time when rivals, especially in China, have come up with new affordable models, and as high interest rates dampen demand.

Investors supporting Musk’s pay package

Despite headwinds for its mainstay car business, investors overwhelmingly voted in favor of Musk’s record $56 billion pay package at the meeting. Board chair Robyn Denholm said prior to the vote that reinstating the pay package was necessary for “retaining Elon’s attention and motivating him.”

Musk said in a social media posting that Tuesday’s rally of Tesla stock is “small relative to vehicle autonomy and Optimus,” referring to his company’s self-driving cars and humanoid robots that he has said will significantly boost the EV maker’s market value once they become reality.

Tesla’s sales in China and U.S.

Tesla does not provide regional breakdown of sales, but some analysts said better-than-expected sales in China and the U.S. may have helped Tesla deliver stronger-than-expected results. In April, Tesla made another round of price cuts in key markets such as the United States, China and Europe.

Tesla offered loans with interest rates of zero or near zero percent on car purchases in China and the U.S. In the U.S. it heavily promoted its leasing plans, which make its vehicles eligible for $7,500 federal credits.

Chinese automakers said their sales grew by double-percentage points during the second quarter. BYD said its second-quarter sales of battery electric vehicles jumped 21% to 426,039.

Tesla’s China sales, which include domestic sales and exports to Europe and other countries, fell 17% in the second quarter from a year earlier. The company gave no breakdown on its China sales.

Tesla’s outlook

This marks the first time Tesla posted a year-on-year sales fall for a second consecutive quarter. Musk has said he expects the company to increase deliveries in 2024 from a year earlier. However, Wall Street largely expects a drop due to poor sentiment around EVs.

Tesla said in January that it expected “notably lower” growth in deliveries this year and dropped its goal of delivering 20 million vehicles a year by 2030.

Musk has promised to focus Tesla instead on self-driving cars, but some investors and experts remain skeptical that Tesla can perfect it anytime soon.

Tesla stock update

Tesla share was up 7.7% at a price of $226.11 on Tuesday afternoon. The stock have declined about 9% so far this year.

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We asked some PR professionals what they think Musk is doing wrong, right and here’s what they had to say. 

Elon Musk’s PR Might Be A Bitter Pill But Is An Acquired Taste 

Elon Musk’s net worth has bolstered him up to the record of being the richest man in the world. Musk’s success story is purely attributable to the fame he achieved as SpaceX and Tesla’s CEO. Musk always advocated for the unique innovations that science brought to him from both his private space company and electric automobile maker. 

Until a very elon–gating public jab in October 2022, the achievements of Musk celebrated him as a visionary. Although Musk’s spontaneous decisions have majorly backfired on him, if he could be more transparent in also sharing the context of his strategy, he may not be as vilified as he is. After all, Elon Musk is a shrewd businessman. What affects his image, affects his brand’s market values as well. So what went wrong, right after Musk bought a certain social media platform and Twitter changed to X?  

After Elon Musk took over Twitter late last year, the existing issues of the social media platform became more pronounced. Musk reinstated suspended accounts for ‘hate speech’, fired more than thousands of Twitter employees, eliminated ‘blue ticks’ for verified accounts, alienated top advertisers, and Twitter changed to X, while also partaking in threatening to sue dozens of others. Amongst them, Musk found someone other than himself to blame for X’s woes – the Anti-Defamation League, which has been placed under a lawsuit threat as well. 

So what do PR professionals have to say?

PR Reacts: Elon Musk’s Success Story

Sarah Johnson of National Business Capital had a quite refreshing take on Musk’s controversial stature. Johnson believes that Musk is terrific for doing something that most CEOs should learn to do – not being pressured by the naysayers and developing a thick skin to criticism.

Johnson implied that Musk was definitely doing something right to have always been spoken about, either in a positive light or not. Musk has championed not particularly caring of what others think of him and that has worked tremendously on his reputation. 

Although some may not laud his brusque style of directing, Johnson says that Musk has always been transparent about his intentions with Twitter – monetizing the site. Twitter changed to X and the outrage was imminent. But as Elon Musk, the one incredible thing about his PR strategy is on how he interacts with his audience. None of the CEOs have not alienated its site’s users. Even though he calls the shots, Musk has found his fame calling in letting his users decide on what he should do. 

Johnson says that as far as PR could go, Musk’s communication style has beckoned the interest of why people can’t stop talking about him, be it backlash or praise. It humanizes his brand and fosters loyalty amongst customers. 

Elon Musk Harnesses A Nuance To His PR Image

Like most nuanced, if Candice D’Angelo of The Agency East had to sum up Elon Musk’s PR in one word, it would be ‘winning’. 

As a public figure, much of the communication is transparent but not all leaders are meant to capture everyone’s hearts. Musk has taken every criticism thrown at him in strides to do what he wishes to do. It may seem exasperating but how else did Tesla sales boom or SpaceX be celebrated as Elon Musk’s success story? – Musk’s persona lingers curiosity. 

“Because of his transparency and candor, Musk ruffles more feathers than not but in my opinion, love him or hate him, he has captivated us all.”

Zachary Weiner of Emerging Insider talks about how in the age of social media, Musk’s humor and casual tone have made him relatable to people, which is seldom found among eminent people. Weiner introduces the aspect of how Musk is consistent in aligning his personal brand with the vision of innovation of his companies as well. 

While Musk is notorious for his impulsive tweets and unfiltered comments, he has paid the price for it through lawsuits and controversies. But what makes Elon Musk’s net worth? We believe it is the rawness evident in Musk’s contradictions. He’s just like the common folk. And that is a rarity.

The post Elon Musk Is “Winning”: What PR Professionals Had to Say appeared first on Industry Leaders Magazine.

With the rising importance given to climate changes, countries are becoming more aware of the steps they must take to reduce the negative effects. One of the most significant changes that can help reduce pollution all over the world is the use of electric cars. Electric cars might bring about a positive change in the atmosphere as they don’t let out carbon nor do they consume combustible gases. This makes it a win-win situation from both the sides. Considering this, many companies decided to go easy on the taxes for such cars in order to promote their use. When a country decided to discontinue such tax benefits, it adversely affected the Tesla sales.

While other countries are busy promoting the use of electric cars through monetary perks, the Hong Kong government has decided against it. According to an announcement on the 1^st of April this year, this government discontinued tax breaks that were given to Tesla for its electric cars. It seems that the tax break might have really served its purpose as it’s in absence, the Tesla sales have drastically gone down. This incident is a clear example of how effective government incentive programs can be. An announcement about the reduction in sales was made on Monday.

Decline in Tesla sales

Wall Street Journal analyzed the official data from the Transportation Department of Hong Kong. After this analysis, it was observed that less Tesla models were sold in the second quarter of the year. Based on numbers, there was no sale of a single Tesla S model sedan or Model X sport-utility vehicle in April. Even in the month of May, there was a sale of only five electric cars. Such numbers are almost as good as a zero.

The collapse in Tesla sales comes as a tremendous shock for the automaker. Just before the annulment of the tax break, there was registration of 3,700 electric cars in the first quarter. Within two months of such impressive progress, the numbers of registration have gone tumbling down. Due to the success in the first quarter, its global sales crossed 25,000 in the first quarter itself. This would make this period the best sales quarter ever. But the reduction in the second quarter resulted in the company’s loss of this position. This incident might force Tesla to change its sale strategy as the company was planning to target mainland China next. Tesla decided to carry out long-term analysis before it invests or sets up a plant in any region.

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