Tesla reported lower-than-expected Q2 earnings, leading to an 8% drop in after-hours trading. CEO Elon Musk's vague outlook on product timelines, including the Robotaxi and Full-Self-Driving features, left investors dismayed.
The restructuring charge of $622 million and the lowest gross profit margin in five years further contributed to the disappointment. Tesla has now missed earnings targets for four consecutive quarters, with analysts questioning the company's ambitious vision for the future and its current profitability.
However, the resolution of the battle over Musk's pay package and his acknowledgment of the negative impact of former President Trump's stance on electric vehicles provided some relief. Despite Tesla's record revenue and higher-than-expected vehicle deliveries, the company's Q2 net income fell 45% to $1.48 billion due to a 4.8% drop in global EV sales.
Musk's delay in unveiling the robotaxi prototype and plans for an affordable vehicle in 2024 added to investor concerns.
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