Company shares in Tesla (TSLA) fell after the US electric vehicle maker posted its worst quarterly decline in sales in more than a decade.
Tesla stock dropped nearly 6% on Thursday after the firm reported disappointing second-quarter results. The electric vehicle (EV) maker saw its biggest fall in sales in more than 10 years.
Shares in the company declined 5.7% in Frankfurt, while earnings per share also fell to $0.33, down from $0.40 in the same quarter last year. This came after Tesla (TSLA) reported a 12% drop in revenue to $22.5 billion, with a 16% fall in net income to $1.2 billion.
Sales of its Model 3 and Model Y cars fell by 12% year-on-year, while deliveries of other models, including the Cybertruck, decreased 52%. Total vehicle production reached 410,244 units, representing a similar figure to last year.
In more bad news, Tesla’s core automotive revenue dropped 16% year-over-year to $16.7 billion. Revenue per vehicle also fell, with the Texas-based car maker earning $500 less on each model sold.
Elon Musk responds as Tesla stock falls
Despite Tesla’s recent expansion into India, Elon Musk warned of a few “rough quarters” ahead, adding: “I’m not saying there will, but we could.”
He continued: “You know, Q4, Q1, maybe Q2 but once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I think I would be surprised if Tesla’s economics are not very compelling.”
Tesla’s chief executive listed several external factors as being factors behind the firm’s weak performance. Expanding on his comments, Musk cited falling demand, shrinking US tax credits, and political uncertainty as possible causes.
Tesla announces robotaxi service expansion
Amid the fallout from the disappointing results, Tesla also revealed that it will be expanding its robotaxi service. During the earnings call, Tesla announced it will soon extend the network to California, Florida, Arizona, Nevada, and other states.
Last month, a limited robotaxi ride-hailing service was trialled in Austin, Texas, with around Model Y cars picking up passengers. The program featured a “safety monitor” in the front passenger seat, with teleoperators able to take remote control of vehicles.
The company has ambitious plans for its ride-share service. It aims to cover around 50% of the US population by the end of 2025. Tesla expects robotaxi rides to start making a significant impact on its overall profits by late 2026. Currently, the service remains limited and lags behind competitors like Waymo.
Tesla outlines big plans for its Optimus robot
In the earnings call, Musk revealed that Tesla is developing a new version of its humanoid robot, called Optimus 3. Technicians are believed to be in the process of redesigning many parts of the robot. Plans are in place to build several early prototypes by the end of this year.
There have been previous reports that Optimus production has been delayed while the new version is completed. However, Musk said that production could begin sometime next year if progress continues at the current rate. He has even stated that Tesla could make up to one million units per year within five years.
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