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Daily Express
24-07-2025
- Automotive
- Daily Express
Tesla says it started building initial versions of an affordable car; posts a steep sales decline
Published on: Thursday, July 24, 2025 Published on: Thu, Jul 24, 2025 By: [] Text Size: Tesla said it expects volume production of the long-promised cheaper vehicle in the second half of this year, raising hopes it will rekindle demand as it battles rising competition from cheaper EVs, especially in China, and a persistent backlash against Musk's far-right political views. TESLA said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world. 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 shares were down 2.6% in after-hours trading. Tesla said it expects volume production of the long-promised cheaper vehicle in the second half of this year, raising hopes it will rekindle demand as it battles rising competition from cheaper EVs, especially in China, and a persistent backlash against Musk's far-right political views. Tesla Chief Financial Officer Vaibhav Taneja said on a call with investors that production of the cheaper car would ramp up next quarter, slower than initially expected, and the company did not provide an update on its full-year deliveries forecast. 'Tesla's disappointing results aren't surprising given the rocky road it's traveled recently,' said Emarketer analyst Jacob Bourne. 'A truly affordable model will hit the bullseye in terms of boosting sales if Tesla can effectively position it right without detracting from its higher-priced models.' The second straight quarterly revenue drop, with a 12% fall, comes despite rolling out a refreshed version of its best-selling Model Y SUV that investors had hoped would help revive demand. A 51% dive in sales of automotive regulatory credits, which other automakers who have difficulty complying with government emissions rules buy from Tesla, also hurt revenue and profit. 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. Adjusted profit per share of 40 cents lagged the consensus of 43 cents per share. The automotive gross margin, which excludes regulatory credits, was 14.96%, above Wall Street estimates, helped in part by lower cost per vehicle. Tesla global deliveries dropped 13.5% in the second quarter, which was below Wall Street targets. Tesla had said in April it would start producing the more affordable 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, how many units it had made, or how it would be priced. The company said it continued to expect volume production of its custom-built robotaxi - called the Cybercab - and Semi truck in 2026. 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 with about a dozen Model Y SUVs - and on its development of humanoid robots. Investors are concerned about whether Musk will be able to devote 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 Musk confidant who oversaw sales and manufacturing in North America and Europe, is also adding to the concerns. - Reuters
The Sun
24-07-2025
- Automotive
- The Sun
Tesla says it started building initial versions of an affordable car; posts a steep sales decline
Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world. 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 shares were down 2.6% in after-hours trading. Tesla said it expects volume production of the long-promised cheaper vehicle in the second half of this year, raising hopes it will rekindle demand as it battles rising competition from cheaper EVs, especially in China, and a persistent backlash against Musk's far-right political views. Tesla Chief Financial Officer Vaibhav Taneja said on a call with investors that production of the cheaper car would ramp up next quarter, slower than initially expected, and the company did not provide an update on its full-year deliveries forecast. 'Tesla's disappointing results aren't surprising given the rocky road it's traveled recently,' said Emarketer analyst Jacob Bourne. 'A truly affordable model will hit the bullseye in terms of boosting sales if Tesla can effectively position it right without detracting from its higher-priced models.' The second straight quarterly revenue drop, with a 12% fall, comes despite rolling out a refreshed version of its best-selling Model Y SUV that investors had hoped would help revive demand. A 51% dive in sales of automotive regulatory credits, which other automakers who have difficulty complying with government emissions rules buy from Tesla, also hurt revenue and profit. 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. Adjusted profit per share of 40 cents lagged the consensus of 43 cents per share. The automotive gross margin, which excludes regulatory credits, was 14.96%, above Wall Street estimates, helped in part by lower cost per vehicle. Tesla global deliveries dropped 13.5% in the second quarter, which was below Wall Street targets. Tesla had said in April it would start producing the more affordable 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, how many units it had made, or how it would be priced. The company said it continued to expect volume production of its custom-built robotaxi - called the Cybercab - and Semi truck in 2026. 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 with about a dozen Model Y SUVs - and on its development of humanoid robots. Investors are concerned about whether Musk will be able to devote 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 Musk confidant who oversaw sales and manufacturing in North America and Europe, is also adding to the concerns. - Reuters
The Sun
24-07-2025
- Automotive
- The Sun
Tesla says it started building initial versions of an affordable car
Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world. 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 shares were down 2.6% in after-hours trading. Tesla said it expects volume production of the long-promised cheaper vehicle in the second half of this year, raising hopes it will rekindle demand as it battles rising competition from cheaper EVs, especially in China, and a persistent backlash against Musk's far-right political views. Tesla Chief Financial Officer Vaibhav Taneja said on a call with investors that production of the cheaper car would ramp up next quarter, slower than initially expected, and the company did not provide an update on its full-year deliveries forecast. 'Tesla's disappointing results aren't surprising given the rocky road it's traveled recently,' said Emarketer analyst Jacob Bourne. 'A truly affordable model will hit the bullseye in terms of boosting sales if Tesla can effectively position it right without detracting from its higher-priced models.' The second straight quarterly revenue drop, with a 12% fall, comes despite rolling out a refreshed version of its best-selling Model Y SUV that investors had hoped would help revive demand. A 51% dive in sales of automotive regulatory credits, which other automakers who have difficulty complying with government emissions rules buy from Tesla, also hurt revenue and profit. 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. Adjusted profit per share of 40 cents lagged the consensus of 43 cents per share. The automotive gross margin, which excludes regulatory credits, was 14.96%, above Wall Street estimates, helped in part by lower cost per vehicle. Tesla global deliveries dropped 13.5% in the second quarter, which was below Wall Street targets. Tesla had said in April it would start producing the more affordable 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, how many units it had made, or how it would be priced. The company said it continued to expect volume production of its custom-built robotaxi - called the Cybercab - and Semi truck in 2026. 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 with about a dozen Model Y SUVs - and on its development of humanoid robots. Investors are concerned about whether Musk will be able to devote 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 Musk confidant who oversaw sales and manufacturing in North America and Europe, is also adding to the concerns. - Reuters
The Sun
18-07-2025
- Business
- The Sun
Netflix profits soar with ads and higher subscription prices
SAN FRANCISCO: Netflix has posted a stronger-than-expected second-quarter performance, with profits rising 45% year-over-year. The streaming giant attributed this growth to higher subscription prices and a rapidly expanding advertising business. Revenue climbed 16% to $11.1 billion for the quarter ending June 30, surpassing both analyst expectations and the company's own projections. Net profit surged to $3.1 billion, prompting Netflix to raise its full-year revenue forecast to between $44.8 billion and $45.2 billion. Content remained a key driver, with major hits like the third season of 'Squid Game' drawing 122 million views. The company called it 'our sixth biggest season of any series in our history.' Other successful titles included 'Ginny & Georgia' (53 million views) and 'Sirens' (56 million views). The animated film 'KPop Demon Hunters' also performed well, reaching 80 million views and topping global music charts with its soundtrack. Netflix highlighted the continued popularity of Korean content, reinforcing its global strategy. Looking ahead, the company is optimistic about upcoming releases, including the second season of 'Wednesday,' the final season of 'Stranger Things,' and new films from acclaimed directors like Kathryn Bigelow and Guillermo del Toro. The platform is also expanding into live programming, with plans for marquee boxing matches and NFL games. This diversification aligns with Netflix's push beyond traditional on-demand entertainment. Investors have responded positively, with shares rising over 40% year-to-date. The company's crackdown on password sharing and introduction of ad-supported tiers have boosted profitability. While Netflix no longer discloses subscriber numbers, it continues to focus on engagement metrics. Advertising remains a key growth area, with Netflix expecting to double ad revenue in 2025. The company forecasts $9 billion in ad-based revenue by 2030. 'With another robust earnings showing in Q2, Netflix continues a winning streak going back several quarters and cements its place as the leader among streaming services,' said Emarketer analyst Paul Verna. - AFP
Int'l Business Times
17-07-2025
- Business
- Int'l Business Times
Netflix Profits Surge Off Ads, Higher Subscription Prices
Netflix reported stronger than expected second-quarter results Thursday, with profit jumping 45 percent year-over-year as the streaming giant benefited from subscription price increases and a growing advertising business. Revenue climbed 16 percent to $11.1 billion in the quarter ended June 30, beating analyst estimates and the company's own guidance, while net profit surged to $3.1 billion. The company raised its full-year revenue forecast, noting that it expects revenue to be between $44.8 billion and $45.2 billion in 2025, up from a range of $43.5 billion to $44.5 billion. Netflix highlighted strong performance from its content offers in the quarter, with major hits including the third season of "Squid Game," which drew 122 million views. It "has already become our sixth biggest season of any series in our history, with just a few weeks of viewing so far," the company said in a statement. Other standout titles included the third season of "Ginny & Georgia" with 53 million views and "Sirens" with 56 million views. There was also the animated film "KPop Demon Hunters" with 80 million views, which became "one of our biggest animated films ever" and generated a soundtrack that topped music charts globally. "Korean content continues to be popular with our audience," the company said, pointing to the continued success of international programming that has become a hallmark of Netflix's global strategy. Netflix expressed optimism about the second half of 2025, highlighting an upcoming slate that includes the highly anticipated second season of "Wednesday," the final season of "Stranger Things" and new films from major directors including Kathryn Bigelow and Guillermo del Toro. The company has also announced plans to expand live programming with marquee boxing matches and NFL games, as it continues to diversify its content offerings beyond traditional on-demand entertainment. Netflix shares have surged more than 40 percent year-to-date as investors have responded positively to the company's shift toward profitability, which saw it crack down on password sharing and turn to ads for more revenue. The company counted over 300 million subscribers last December, at the end of a particularly successful holiday season, when it gained almost 19 million new subscriptions. But the company no longer discloses these figures, in order to focus on audience "engagement" metrics (time spent watching content). In the quarter, Netflix continued to build out its advertising capabilities, saying that it expects to roughly double ads revenue in 2025, though it did not provide specific figures. The service is forecasting $9 billion in revenues from its ad-based subscriptions by 2030. "With another robust earnings showing in Q2, Netflix continues a winning streak going back several quarters and cements its place as the leader among streaming services," said Emarketer analyst Paul Verna.
