Latest news with #TeslaMotors
Auto Blog
11 hours ago
- Automotive
- Auto Blog
Cheaper Model Y Can't Come Soon Enough As Tesla's Profits Tank Again
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. View post: Which is the Cooler Rally‑Car Homage: MAT New Stratos or the Kimera Automobili EVO37? Tesla's rough year continues It doesn't seem that long ago that Tesla was an unstoppable force, as it experienced an unprecedented rate of growth. While the Model 3 and Model Y continue to sell strongly, Tesla's latest Q2 quarterly results continue to demonstrate a sharp decline for the EV giant. In an earnings conference call, Elon Musk focused on automated driving software, robots, and robotaxies, rather than vehicle sales, as he tried to paint a more positive picture of the company's future. Let's take a more detailed look at the numbers. Previous Pause Next Unmute 0:00 / 0:09 Full screen 2025 Nissan Z undercuts Toyota Supra by a surprising amount Watch More Revenue And Profits Both Tumble In Q2 Tesla Model X — Source: Tesla In Q2 of 2025, Tesla's revenue dropped 12% and profits were down by 16% year-on-year, due to a sharp decline in sales, reports The Globe And Mail. Revenue was down from $25.5 billion to $22.5 billion, while quarterly profits dropped from $1.4 billion to $1.17 billion. In premarket trading on Thursday, Tesla's shares dropped by close to 7%, and its stock is down by around 18% so far in 2025, according to Reuters. Elon Musk's political controversies are widely believed to have damaged Tesla's image. This, together with stronger and stronger competition, has resulted in the decline we're witnessing in 2025. Furthermore, the groundbreaking Cybertruck was expected to take over the electric pickup segment, but that hasn't happened. 'Musk is the face of Tesla, and for many people, the brand can't exist outside of his influence. So, when his credibility and trust decline, so does the equity of the Tesla brand', said Daniel Binns, Global CEO at Elmwood. Musk Predicts More Struggles, Confirms Cheaper Model Y Parked 2025 Tesla Model Ys — Source: Tesla In the earnings call, Musk admitted that the company expects a 'few rough quarters' in the near future. Contributing to this is the fact that federal tax incentives for EVs are falling away at the end of September, which will significantly affect the value proposition of Tesla's two high-volume cars, the Model Y and Model 3. Many expected a cheaper car to boost Tesla's fortunes, but this vehicle won't be an all-new car. 'It's just a Model Y,' said Musk when talking about the lower-cost EV, reports Inside EVs. 'Let the cat out of the bag there,' he said. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. 'We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025,' said Tesla. We don't expect anything close to the once-promised $25,000 EV. Now that we know a cheaper Model Y is coming, a less powerful version that starts at below $40k looks likelier. 'We're in this weird transition period where we'll lose a lot of incentives in the U.S.,' Musk said. 'Once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I would be surprised if Tesla's economics are not very compelling.' Musk is known for his hyperbolic promises, so we would take that statement with a pinch of salt. It's clear that Tesla has an image problem, and changing that with Musk still at the helm is going to be an uphill battle. About the Author Karl Furlong View Profile
Bloomberg
a day ago
- Automotive
- Bloomberg
Key Takeaways From Tesla's Second Quarter
That's a wrap. Here are my key takeaways from Tesla's second-quarter earnings: For more on Tesla Second-Quarter Earnings, click here for our TOPLive blog.
Wall Street Journal
a day ago
- Automotive
- Wall Street Journal
Tesla Profit Falls, Hurt by Plunging EV Sales
Tesla's TSLA 0.14%increase; green up pointing triangle net income plunged 16% in the second quarter, marking further steep declines at the company as automotive sales continue to fall. The company's second-quarter revenue declined after a drop in automotive deliveries, which were down 13.5% from a year earlier.
Forbes
a day ago
- Automotive
- Forbes
Earnings Preview: What To Expect From Tesla After Musk Returned From D.O.G.E.
Close up of Tesla logo on a charger at a Supercharger rapid battery charging station for the ... More electric vehicle company Tesla Motors, in the Silicon Valley town of Mountain View, California, August 24, 2016. (Photo by Smith Collection/Gado/Getty Images). Tesla is scheduled to release earnings after Wednesday's close. The stock hit a record high of $488.54/share in December 2024 and is currently trading near $333. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting: Earnings Preview The company is expected to report a gain of $0.29/share on $22.61 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.27/share. The Whisper number is the Street's unofficial view on earnings. A Closer Look At The Fundamentals Earlier this year, Elon Musk left the D.O.G.E to focus on Tesla and his other companies. Investors want to see what the numbers look like now that he is focused full time on his businesses. The company has seen up and down earnings over the last few years. In 2020, the company earned $0.75/share. In 2021, earnings jumped to $2.26. Then, earnings grew again to $4.07 in 2022. Then, earnings fell to $3.12 in 2023. In 2024, earnings fell to $2.28. In 2025, earnings are expected to fall to $1.84. In 2026, earnings are expected to grow to $2.82/share. The stock sports a price-to-earnings (P/E) ratio of 157 which is roughly 6.5 times higher than the benchmark S&P 500. Chart & Data Courtesy A Closer Look At The Technicals Technically, the stock has been lagging other growth stocks recently but is building a bullish base. The stock is currently -31% below its 52-week high and is trading above its 50 and 200 DMA lines. The bulls want to see the stock gap up after reporting earnings and the bears want to see it gap down. True Market Leader = Remarkable Stock Tesla is considered a true market leader and is one of the strongest winners in the history of the U.S. stock market. Tesla went public on June 29, 2010, with an initial public offering price of $17 per share, raising over $226 million. Since its IPO, Tesla's stock has experienced significant fluctuations and significant growth. It is currently in one of its long down periods but the stock has managed to breakout of these long trading ranges and race higher. After the IPO, Tesla's stock price remained relatively flat for the first few years. The company was primarily focused on surviving financially and preparing to launch its first built-from-scratch electric vehicle, the Model S sedan, which debuted in 2012. From 2013 onwards, Tesla's stock began to rise as the company expanded its product line and increased production capacity. Key milestones during this period included the introduction of the Model X, Model Y, and the Model 3, which helped Tesla dominate the EV market globally. Tesla's stock saw a dramatic increase in value since the COVID-19 pandemic, driven by strong sales growth, increased production, and investor enthusiasm for electric vehicles. In March 2020, the stock was trading near $34 and it is currently trading near $333! Even though it is a down from its 2024 high, stepping back, that is a massive move. Company Profile Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas. Pay Attention To How The Stock Reacts To The News From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the The stock has been featured many times over the years on my stock market membership site,
The Star
3 days ago
- Automotive
- The Star
Tesla's easy money from regulatory credits set to dry up amid weakening sales
FILE PHOTO: A logo of Tesla Motors on an electric car model is seen outside a showroom in New York June 28, 2010. REUTERS/Shannon Stapleton/File Photo SAN FRANCISCO (Reuters) -A key driver of Tesla's profit is disappearing fast as the U.S. government changes policies on an environmental asset known as regulatory credits. Investors are likelyto have a number of questions for Chief Executive Elon Musk when Tesla reports second-quarter results on Wednesday. Among them are how fast the EV maker can turn a trial robotaxi program into a money-making business, how to avoid a decline in sales for the second year in a row, and Musk's possible political plans. Less sexy, perhaps, is the issue of regulatory credits, which are bought by traditional automakers from electric-vehicle companies to make up for the tailpipe pollution from their gasoline-powered vehicles. But this income segment is crucial for Tesla's finances, having been the main driver of its profit in the first three months of the year. Without the income from those credits, sold to internal combustion engine automakers, Tesla would have reported a first-quarter loss, and Musk may be pressed to say how long he thinks Tesla will be able to sell credits. The U.S. government incentivized zero-emission vehicle production by giving credits to EV makers while imposing hefty penalties on combustion engine vehicle manufacturers that fail to meet emission standards. The traditional automakers can avoid the fines by purchasing credits from companies like Tesla. Recent legislation passed under the U.S. President Donald Trump, however, is set to eliminate fines for automakers that fail to meet National Highway Traffic Safety Administration's Corporate Average Fuel Economy standards — which underpin much of the demand for these regulatory credits. "They are making conventional ICE vehicles more competitive while making EVs less competitive," said Batt Odgerel, a director at the Energy Policy Research Foundation, referring to Congress, Trump and the federal government. Tesla risks losing revenue from the credits as well as market share, he added. The future of two other sources of credits - from the U.S. Environmental Protection Agency and California's zero-emission vehicle program - is uncertain, with proposed rule changes and political and legal challenges. "That is certainly likely to be a big loss of revenue for automakers" that were selling credits, added Chris Harto, a senior policy analyst at Consumer Reports. Tesla has reported more such sales than anyone else in the automotive sector. FASTER DECLINE THAN EXPECTED One question for Tesla is how fast the credit sales are falling and whether the EPA and California transactions are holding up for now. Other credit producers include smaller EV playersRivian and Lucid. Analysts at William Blair calculate that about three-quarters of Tesla's credit revenue comes from CAFE standards. Within days of the new law, they slashed estimates for Tesla's 2025 credit revenue by nearly 40% to about $1.5 billion. They expect it to plummet to $595 million next year, before being wiped out in 2027. That is a faster decline than seen by many on Wall Street. Tesla's revenue from credit sales will fall 21% this year to $2.17 billion and fall consistently in the coming years, according to 14 analysts polled by Visible Alpha this month. "The elimination of the corporate average fuel economy (CAFE) fines requires a reset in expectations," the William Blair analysts said in their note earlier this month. Revenue from credits wasalways expected to dwindle as traditional automakers ramped up production of zero- or low-emission cars, but not so fast. Tesla has acknowledged its financials would be "harmed" if demand and prices of credits dropped. It did not respond to a request for comment. The credits, which have virtually no cost to produce, were instrumental to keeping Tesla profitable several years ago. While surging Model Y demand once pushed Tesla's profit well above regulatory credit income, recent sales declines and aggressive price incentives have meant regulatory credits are once again a key support for profit. Tesla's loss is a win for internal combustion engine automakers such as General Motors, Ford and Honda, and it comes on top of a second win - the early end of a $7,500 U.S. tax credit for EVs, which now will happen at the end of September. (Reporting by Abhirup Roy in San Francisco and Akash Sriram in Bengaluru; Editing by Peter Henderson and Matthew Lewis)
