Tesla starts 'first builds' of affordable model, posts steepest drop in quarterly revenue in over a decade
Tesla did not provide an update on its full-year deliveries forecast after pulling its guidance in April, citing economic concerns.
The company reported the steepest decline in quarterly revenue in more than a decade, with a 12 per cent fall, as it battles strong competition from cheaper electric vehicles and a backlash against CEO Elon Musk's political views.
Tesla shares were down 1 per cent in after-hours trading.
Revenue fell to $22.5 billion for the April-June quarter from $25.50 billion a year earlier. Analysts on average were expecting revenue of $22.74 billion, according to data compiled by LSEG.
The company reported a second straight quarterly revenue drop despite rolling out a much-awaited refreshed version of its best-selling Model Y SUV that investors had hoped would rekindle demand.
Analysts now expect the cheaper vehicle to boost sales. Tesla had said in April it would start producing the model by the end of the first half and sources had told Reuters the vehicle, a stripped-down version of its Model Y SUV, would be delayed by at least months. Tesla on Wednesday did not disclose any details on the model or how many units it had made.
Much of the company's trillion-dollar valuation hangs on its bet on its robotaxi service - a small trial of which was started in Austin, Texas, last month - and developing humanoid robots.
However, investors are worried about whether Musk will be able to give enough time and attention to Tesla after he locked horns with President Donald Trump by forming a new political party this month. He had promised weeks earlier that he would cut back on government work and focus on his companies.
A series of high-profile executive exits, including a longtime Elon Musk confidant who oversaw sales and manufacturing in North America and Europe and left Tesla last month, is also adding to the concerns.
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