Tesla earnings plummet as net income drops 23 per cent
Senator makes maiden speech holding baby son
Tesla has recorded a 23 per cent drop in adjusted net income and a 12 per cent decrease in overall revenue, with a double-digit drop in adjusted earnings for the second quarter, both worse than what Wall Street expected.
The stricter reading for net income fell 16 per cent to $USD1.2 billion ($1.8 billion).
Their core auto revenue also dropped 16 per cent.
Tesla facility vandalised and cars set ablaze amid anti-Musk sentiment
Since 2019, regulatory credit sales alone have brought the company $10.9 million in profits, in some instances the company would have lost money annualy without them.
"These regulatory credit sales are the reason that Tesla exists today," said analyst Gordon Johnson
Reports found revenue per vehicle dropped to $USD42,231 ($63,978) as the company made $USD500 ($757) less on each car sold.
The drop in sales has been largely attributed to Tesla CEO Elon Musk's political activities as well as increased competition in the electric vehicle market, particularly from China.
Tesla trade-ins at record levels in the US – report
Tesla sales continue to drop in markets where EV sales are rising overall.
The company is set to lose its title of the world's largest EV builder to BYD, a Chinese manufacturer that doesn't sell cars in the United States.
Musk did not comment on the company's sales and revenue dive during his opening remarks on the company's call with investors Wednesday, following the earnings report.
DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.
