July 24, 2024 - $Tesla (TSLA.US)$shares dropped 7.93% to $226.83 in pre-market trading on Wednesday. The company has reported its financial results for the second quarter of 2024 after market close on Tuesday, July 23, 2024.

Financial Highlights

• Revenue came in at $25.5 billion, versus the $24.54 billion analysts expected.

• Adjusted earnings totaled $0.52 per share, Analysts had forecast $0.61per share.

• Operating income reached $1.60 billion, which marks a decline of 33% year-over-year.

• Net earnings were reported at $1.81 billion, indicating a substantial year-over-year drop of 42%.

Tesla has not provided a new full-year sales target, but it warned that "in 2024, the growth rate of our vehicle fleet could be significantly lower than that of 2023." Tesla's profitability has taken a hit due to declining sales and reduced payments by buyers for its core models. Musk partially attributed the underperformance to a price war that erupted last year when competitors launched their own electric vehicles. During a call with analysts, Musk stated, "There are quite a few competitors' cars hitting the market, but they are not performing well; however, there are substantial discounts on these vehicles."

The CEO of Tesla has confirmed that the launch of Robotaxi has been postponed to October 10th. In its financial report, Tesla indicated that it still faces regulatory and technological hurdles before it can offer driverless robotaxi services. Musk expressed optimism that Tesla's autonomous driving would receive regulatory approval and stated that he would be "shocked" if the first Robotaxi ride did not happen next year, but he could not provide a definitive timeline.