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Tesla second-quarter profit falls as EPS misses Wall Street
Tesla reported 31 cents per share, compared with 51 cents expected, and shares slid more than 3% after the results.
Tesla reported second-quarter earnings on Wednesday showing profit came in far below Wall Street expectations, even as revenue grew. The company posted earnings of 31 cents per share, below the 51 cents per share analysts had predicted, while revenue rose to $28.23 billion versus an expected $25.71 billion.
According to The Guardian Business, Tesla shares fell more than 3% in after-hours trading immediately after the earnings release. The outlet also noted the stock has already declined about 14% year to date, and the latest move followed the quarterly miss.
Tesla’s revenue and profit performance also comes amid ongoing pressure on its core automotive business. The article points to the end of US electric vehicle tax subsidies last year and increased competition from cheaper Chinese automakers, and it says Tesla has shifted its focus toward robotics, autonomous driving, and AI.
The Guardian Business added that Tesla previously said earlier this month it exceeded Wall Street’s expectations for second-quarter auto sales, with the turnaround driven largely by Europe. It attributes the Europe strength to still-in-place EV subsidies and higher gas prices tied to the US-Iran war, and it also describes Musk’s continued claims that its Optimus robot could become the biggest product ever.