Tesla says it started building initial versions of an affordable car, posts a steep sales decline
Elon Musk
's electric vehicle maker posted the worst quarterly sales decline in more than a decade and profit that missed Wall Street targets, but its profit margin on making cars was better than many feared.
"Tesla's disappointing results aren't surprising given the rocky road it's traveled recently. But the company maintains a strong foundation in the key growth sectors of
energy storage
, robotics, and AI-powered transportation. While traditional automakers like GM are gaining EV market share, we can expect that Tesla will continue pushing the needle on innovation if it can get a better handle on its current leadership distractions. Key challenges that will linger are supply chain risks related to its reliance on China and fierce competition from Chinese EV makers in that market.
Tesla doesn't need to choose between cars and future tech. There are technical synergies between EVs, robotaxis, energy systems, and robotics that could accelerate innovation across all fronts. The question is whether leadership can execute on this integrated vision in this fast-moving market."
Andrew Rocco, stock strategist, Zacks Investment Research, Chicago:
"Tesla delivered earnings Wednesday night that fell short of top-and-bottom line expectations slightly. Despite the earnings miss, Tesla shares were buoyed early by the fact that the bleeding in gross margins has seemingly come to a halt, with gross margins coming in at 17.2% versus Wall Street estimates of 16.5%. The gross margin beat is especially impressive when investors consider that Tesla has been offering generous incentives and lower prices to its consumers.
Coming in to the report, Wall Street expectations were dire amid a slowing core EV business and CEO Elon Musk's reputational damage on both sides of the political aisle. Nevertheless, Tesla has limped over the low bar that was a dramatic earnings miss and delivered earnings that were better than most feared.
Additionally, news broke right before the market closed that Tesla is in "early talks" with the state of Nevada to expand its
robotaxi service
. If Tesla can convince investors that it will scale its robotaxi service rapidly, shareholders will be more forgiving regarding the core EV business, as Musk and his team look to expand into new verticals, transitioning and diversifying the business."
Thomas Monteiro, senior analyst, investing.com:
"Although still far from what fundamentals would suggest for a trillion-dollar company, Tesla's latest numbers do spark some optimism, indicating that the worst is likely behind it-at least in terms of the core auto business.
Given the plethora of headwinds faced during the difficult Q2 - both internally and on the macro front - margin deterioration appears to have come in at the lower end of the curve. When combined with improving cyclical demand dynamics in markets like China and parts of the US, this suggests that full-year results might not be as dire as previously expected following the disastrous first half of the year.
This also shows that the company has weathered the tariff storm somewhat better than initially projected, optimizing the production/delivery equation in the US. While it remains unclear how much of a hit regulatory credits will take in Q3, it's evident the company will need to continue refining its production strategy elsewhere to better navigate the second half.
From this perspective, recent product announcements are aligned with those strategic needs-particularly around the highly anticipated
Model 2
. With Tesla entering the Indian market and working to regain ground in China, we view this as a potential game-changer for H2.
All things considered-and while we're still a ways off from seeing true fundamental support for the current share price-the outlook for the core business is looking somewhat better. This could continue to support Tesla's long-term transition into a fully AI/robotics-driven company, which appears to be where Musk is placing his bets."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
26 minutes ago
- Hindustan Times
Pakistan seeks to expand high-tech ties with China in space, nuclear fields
Pakistan wants to deepen technological cooperation with China in the fields of space exploration and nuclear technology, a senior Pakistani minister has said. Minister Ahsan Iqbal said Pakistan plans satellite launches and aims to send astronauts to China's space station next year.(Ahsan Iqbal/ LinkedIn ) Pakistan is keen to strengthen scientific partnerships with China, including in artificial intelligence (AI) and quantum computing, Pakistan's Minister for Planning, Development and Special Initiatives Ahsan Iqbal, who was on a visit to China, told the media. "I had an opportunity to meet with the new chairman of China's nuclear authority and the space agency,' Iqbal said in a media briefing early this week, the Hong Kong-based South China Morning Post reported on Thursday. 'We also discussed how we can further strengthen our cooperation in peaceful nuclear use of technology by extending nuclear power into agriculture,' he said. Also Read: China backs Pakistan's counter terrorism efforts, says foreign minister Wang Yi Pakistan's Karachi Nuclear Power Plant Unit 3, which uses the Chinese-made Hualong One reactor, completed its final tests before going into operation, according to the report. Iqbal said China-Pakistan space cooperation included satellite launches and plans to send Pakistan's astronauts to China's space station next year. 'Later with Chinese help, we will send and land a rover on the moon that will be yet another milestone,' he said. 'Pakistan also aims to have its lunar landing or landing on the moon by 2035, and we have also sought cooperation in this field,' he said. During his visit to China, Iqbal said he had witnessed the July 31 launch of the Pakistan Remote Sensing Satellite-1 at the Xichang Satellite Launch Centre in the southwestern province of Sichuan.
Time of India
26 minutes ago
- Time of India
China just fired a warning shot at Nvidia — is the global AI chip war about to explode?
America and China are facing tensions regarding artificial intelligence chips. Beijing expressed concerns about Nvidia's H20 AI chips. China warned Nvidia about security issues. This move highlights rising tensions over chip technology. The US is considering stricter export controls. China aims for technological self-sufficiency. Both countries are preparing for a global AI chip war. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Could this reshape the global AI chip market? Is this just about chips or something bigger? Tired of too many ads? Remove Ads FAQs Tensions between the U.S. and China are flaring again. This time it's apparently in the high-stakes world of artificial intelligence chips. Beijing is after Nvidia , a world leader in AI chips. China didn't stop Nvidia's products from being sold, but it did give a strong warning that could change the course of the AI tech called Nvidia to talk about its H20 AI chips, saying it had "security concerns" that were not very clear. Many analysts think this was a strategic message. There was no ban, but the move shows that tensions are rising over chip traceability and technological sovereignty. Both countries are getting ready for a new phase in the war over AI chips around the message was clear that it will not tolerate perceived flaws or hidden functions in American-made chips, particularly when AI dominance is at comes at a time when US officials are actively looking into new ways to embed location-tracking features into AI chips, a move billed as improving national security but viewed by China as potential backdoor surveillance, as per a report by response, Nvidia categorically denied any such features in its hardware, stating that there are "no kill switches, no spyware, and no backdoors."Analysts believe that this is more than just Nvidia's H20. It's a strategic warning from Beijing, signaling opposition to US chip controls and claiming a foothold in the battle for AI supremacy. While Nvidia maintains its innocence, the entire chip ecosystem is rattling, as per a report by its age, the H20 is one of the few AI chips that can still be legally sold in China, making it a lightning rod in this geopolitical the market reacted quickly. Chinese semiconductor stocks, such as SMIC and Cambricon, soared following the news. Investors believe that China will now double down on domestic AI chip development, hastening its long-term goal of technological self-sufficiency, as per a report by the scenes, the United States tightens the screws. Washington is pushing for stricter export control enforcement, and some lawmakers are supporting the Chip Security Act , which aims to improve traceability and national security in critical AI hardware. Others, however, prefer a more diplomatic approach, seeking compromise over the Trump campaign has hinted that a broader agreement with China is already in the works. According to reports, rare-earth minerals, which are essential for chipmaking, are being used as bargaining Chinese state media is pushing back, referring to the H20 as a "castrated" product and implying that the US is backing down not out of diplomacy, but because China's own AI capabilities are rapidly catching up, as per a report by or not a massive deal is reached, one thing is certain: Nvidia's run-in with Chinese regulators has changed the tone of the global chip war. What once appeared to be a one-sided race has evolved into a tense technological standoff. And, with a high-level US-China summit expected this fall, both sides are rethinking their regulators expressed concern about security risks in Nvidia's older H20 AI there is no ban yet, but China's warning underscores rising tensions over AI chip technology and sovereignty.
&w=3840&q=100)
First Post
26 minutes ago
- First Post
Will Trump's tariffs result in China-India-Russia joining hands?
US President Donald Trump seems to be picking fights on all fronts. Meanwhile, Prime Minister Narendra Modi is set to visit China soon, while Russian President Vladimir Putin is slated to come to India. This comes in the backdrop of Trump imposing a 50 per cent tariff on India for its relationship with Russia. There is also talk of reviving the Russia-India-China (RIC) grouping that was founded in the 1990s. But what do we know? read more Advertisement Chinese President Xi Jinping, Russian President Vladimir Putin and Indian Prime Minister Narendra Modi. Reuters Will India China and Russia join hands as a result of Trump's tariffs? The US president seems to be picking fights on all fronts. Prime Minister Narendra Modi is set to visit China soon, while Russian President Vladimir Putin is slated to come to India. This comes in the backdrop of Trump imposing a 50 per cent tariff on India for its relationship with Russia. There is also talk of reviving the Russia-India-China (RIC) grouping that was founded in the 1990s. STORY CONTINUES BELOW THIS AD Let's take a closer look Modi in China The three countries already seem to be making moves against America. Modi will travel to Tianjin for the Shanghai Cooperation Organisation summit in late August. This is his first trip to China since 2018. The summit is related to be held from August 31 to September 1. Meanwhile, Chinese Foreign Minister Wang Yi is set to undertake a trip to India ahead of Modi's visit. Wang, who is a member of powerful Political Bureau of the Central Committee of the Communist Party of China (CPC), will meet National Security Adviser Ajit Doval on 18 August. Wang and Doval are set to discuss the border issue between the two countries. China and India have slowly mended relations since the 2020 stand-off. The two countries share a 3,800-kilometre border in the Himalayas. Defence Minister Rajnath Singh in June visited China for the Shanghai Cooperation Organisation's meeting of defence ministers. The SCO is a 10-nation Eurasian security and political grouping whose members include China, Russia, India, Pakistan, and Iran. Rajnath met his Chinese counterpart Admiral Dong Jun on the sidelines of the summit – the highest-level dialogue between the countries in months. STORY CONTINUES BELOW THIS AD Prime Minister Narendra Modi will travel to Tianjin for the Shanghai Cooperation Organisation summit in late August. AP Rajnath was also the first Indian defence minister to visit China since 2013. He shared a four-pronged approach with Dong for better ties. He also said both nations should seek a 'permanent solution' to the border dispute. He also announced the resumption of the Kailash Mansarovar Yatra – which had been suspended since COVID-19 pandemic and then the Galwan Valley clash. India and China previously met at a high-level to work on the disengagement process at Demchok and Depsang Plains in October 2024. That development came after intense negotiations with Prime Minister Narendra Modi meeting President Xi Jinping meeting on the sidelines of the BRICS Summit in Kazan in October 2024. Putin in India Meanwhile, Putin is slated to visit India later this year. His visit comes in the backdrop of Trump and other high-ranking US officials accusing India of funding Russia's war in Ukraine by continuing to purchase crude oil and trade with Russia. India has hit back at the US-led West and pointed out that both Washington and the European Union continue to trade with Russia. India has also defended its purchase of crude oil from Russia, pointing out that Russian oil has not been sanctioned and that India is not violating any international laws. New Delhi has also about to put its national interest above all else. STORY CONTINUES BELOW THIS AD Interestingly, NSA Doval is currently in Moscow. The Indian NSA is will discuss Trump's tariffs as well as lay the groundwork for Putin's trip. External Affairs Minister S Jaishanka will also visit Russia later on this month. Prime Minister Narendra Modi with Russian President Vladimir Putin. , Putin, who has limited his travel since the outbreak of the Ukraine war, is slated to visit India later this year. PTI The Russian president has is yet to visit India since the start of the Ukraine war in 2022. He has also limited his trips around the world Send the International Criminal Court in 2023 issued a warrant against him for 'war crimes'. While this affects his travel to states that are signatories to the Rome Statute, it would not interfere with him traveling to India. Putin met Modi at the 22nd Annual Summit in July 2024 in Moscow and the 16th Brics Summit in Kazan in 2023. The two men previously met in December 2021 at the 21st India–Russia Annual Summit. Modi previously called for peace in Ukraine and famously told Putin 'this is not the era of war'. STORY CONTINUES BELOW THIS AD New Delhi continues to view Russia as a 'longstanding and time-tested partner'. The two countries signed the 'Declaration on the India-Russia Strategic Partnership' in October 2000 during Putin's visit. In 2010, the two countries elevated ties from a strategic partnership to a 'Special and Privileged Strategic Partnership'. Total bilateral trade between the two countries touched $65.7 billion in the 2023-2024 financial year. India exported goods worth $4.26 billion to Russia and imported items worth $61.44 billion. This was an around 33 per cent increase from the 2022–23 financial year, where total trade was valued at $49.36 billion. Mineral fuels, oils, and petroleum products particularly crude oil comprise the bulk (76 per cent) of India's imports from Russia. Pharmaceuticals, organic chemicals, electrical machinery, mechanical appliances, iron and steel are India's main imports. Both countries have announced they want to increase trade to $100 billion by 2030. The two countries also have vibrant defence ties including the supply of S-400, licensed production of T-90 tanks and Su-30 MKI, supply of MiG-29 and Kamov helicopters, INS Vikramaditya (formerly Admiral Gorshkov), production of Ak-203 rifles in India and BrahMos missiles. STORY CONTINUES BELOW THIS AD RIC grouping to be revived? It is also possible that the Russia, India and China (RIC) grouping could be revived. The grouping was established at the behest of Russian politico Yevgeny Primakov. It was viewed as a 'a counterbalance to the Western alliance.' India, Russia and China could be a powerful troika. Together, they account for 19 per cent of the world's landmass. They also comprise more than 33 per cent of the world's GDP. Russia's foreign minister earlier this year mused about reviving the dormant group. The last meeting of the RIC was held in 2020 before the stand-off between India and China. What do experts say? Experts say they see an opportunity especially when it comes to the RIC. 'Restarting the RIC mechanism now holds particular importance. All three nations are key advocates for a genuinely multipolar international order. As major powers facing unilateral pressure from the US, they share both the incentive and the imperative to strengthen solidarity and cooperation to bolster global economic stability,' Xie Chao, an associate professor, Institute of International Studies, Fudan University, wrote in Global Times. STORY CONTINUES BELOW THIS AD Xie said the revival of the RIC will come down to whether India and China can build sufficient trust to expand their relationship. Timofei Bordachev, program director of the Valdai Discussion Club, added, 'The trilateral dialogue between China, India and Russia does not constrain the foreign policy autonomy of its participants. Instead, it can make a significant contribution to the global balance and to the fulfillment of their own interests, while also creating additional confidence among other countries in Asia and Eurasia'. Bordachev said reaching a shared understanding in the fast-changing international environment will be the key to the RIC. 'The most likely task for the RIC at the present stage is to jointly articulate what is equally important to all three countries - regardless of short-term political disagreements which are always present in international relations. It is hard to imagine who, besides these three states, could do this better right now', Bordachev wrote. STORY CONTINUES BELOW THIS AD A piece in SCMP said that the RIC being revived could benefit the Global South as a whole. 'With many nations watching the G7 and Brics from the sidelines, RIC offers a pragmatic, issue-specific alternative that emphasises dialogue over confrontation. Its resurrection would send a signal that Asia's major powers are willing to engage even if they disagree amid a model of strategic realism over ideological alignment. Even in a limited form, it can foster regional stability and predictability amid global uncertainty'. The piece noted that while Russia, China and India might never get on the same page for all issues, that is far from a necessity. 'The new realism that defines their interactions is sufficient for this moment in Asian geopolitics', the piece concluded. However, others remain cautious. Indrani Bagchi, writing in Economic Times, noted, 'India has spent the last decade moving closer to the West, both strategically and economically. That has not gone unnoticed in Beijing, Moscow or, for that matter, in all of Asia.' She warned that China has the same position on India's 'strategic autonomy' as the US. 'It has been many years since China became convinced that India has 'pivoted' to the Western camp, and is determined to make it difficult for India,' Bagchi noted. She called for India to get its own house in order. With inputs from agencies
