Tesla's automotive gross margin fell, missing estimates, as it cut prices and increased AI spending. The company plans new affordable models by 2025 but expects less cost reduction.
Tesla's regulatory credit sales nearly tripled, and Cybertruck production remains on track. China-made EV sales slumped, while Robotaxi deployment depends on technological and regulatory progress.
Tesla incurred $350 million in employee termination expenses, while GM's Cruise delayed its Origin self-driving vehicle. Tesla's shares surged after shareholders approved Musk's $56 billion pay package, but Musk delayed the robotaxi announcement to October.
Tesla's earnings fell 43% in the second quarter of 2024, and its profit sank sharply due to weak electric vehicle sales. General Motors is scaling back its Cruise Origin autonomous vehicle and focusing on cost reduction and regulatory hurdles.
Elon Musk's endorsement of Trump has affected Tesla's favorability among Democrats and Republicans. Tesla's aging cars are not selling well, prompting promises about AI and new models.
Tesla plans to use humanoid robots in its production by 2025.
