Tesla's Q2 2024 Profits Plummet by 45%, Yet Optimism Persists for Future AI Projects

San Francisco, California United States of America
CEO Elon Musk expressed confidence in future plans, including affordable vehicle models and AI projects like robotaxis and humanoid robots.
Production for these projects expected to begin in first half of 2025.
Revenue edged up only 2% to $25.5 billion.
Struggles with profitability due to increasing competition, uncertain EV market, rising costs from AI projects, and falling average selling price for Tesla vehicles.
Tesla reported a 45% decrease in Q2 2024 profits to $1.48 billion.
Tesla's Q2 2024 Profits Plummet by 45%, Yet Optimism Persists for Future AI Projects

Tesla, the leading electric vehicle (EV) maker, reported a significant decline in quarterly profits for the second quarter of 2024. The company's net profit dropped by 45 percent to $1.48 billion from the previous year, while revenue edged up only 2 percent to $25.5 billion.

Despite these financial setbacks, Tesla remains optimistic about its future plans, including the development of more affordable vehicle models and advancements in artificial intelligence (AI) technology such as robotaxis and humanoid robots. The company's CEO, Elon Musk, expressed confidence that production for these projects will begin in the first half of 2025.

Tesla's struggles with profitability can be attributed to a combination of factors including increasing competition and an uncertain outlook in the EV market. In addition, costs from Tesla's AI projects have been rising, which has put pressure on the company's bottom line. The average selling price for Tesla vehicles also fell compared to last year.

Despite these challenges, Musk remains committed to reducing the average cost per vehicle and continuing investment in AI-enabled projects. He recently announced that plans for a robotaxi event have been delayed from August 8th to October 10th, with an important design change to the front of the vehicle.

Tesla's investors are eagerly anticipating results, particularly given the company's ambitious plans for robotaxis and humanoid robots. The success of these projects could significantly impact Tesla's future growth and profitability.


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Confidence

85%

Doubts
  • Are there any potential regulatory challenges for Tesla's robotaxis?
  • Is the production timeline for Tesla's AI projects realistic?

Sources

79%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla reports 7% drop in auto revenue as earnings fall short of Wall Street estimates

CNBC News Lora Kolodny Tuesday, 23 July 2024 16:00
  • Unique Points
    • Tesla reported better-than-expected deliveries for Q2, but they were still down from a year earlier for a second straight period.
    • Production of Tesla’s newest model EV, the Cybertruck, is on track to achieve profitability by end of year.
    • Musk expects Tesla will have humanoid robots working in factories next year and available for other companies in 2026.
  • Accuracy
    • Tesla reported weaker-than-expected earnings for Q2 2024 with EPS of 52 cents adjusted vs expected 61-63 cents in other articles.
    • Automotive revenue dropped by 7% to $19.9 billion from $21.27 billion in the same quarter a year ago, but some articles report no mention or different percentage change.
    • CEO Elon Musk expects the first fully autonomous ride 'possibly by the end of this year' or 'next year', but other articles do not mention any prediction for autonomous ride availability.
    • Tesla has not applied for any exemptions for a robotaxi in the United States as of last week, but some articles report no mention or different information about robotaxi exemptions.
    • Plans for more affordable vehicle models remain on track for start of production in the first half of 2025, but other articles provide no information about affordable vehicle plans.
  • Deception (30%)
    The article contains selective reporting as Tesla's revenue increased by 2% but the author only mentions a 7% drop in automotive revenue. The author also makes editorializing statements such as 'Tesla remains the top seller of electric vehicles in the U.S. by far, but is losing market share to a growing number of rivals.' and 'Net income at Tesla declined 45% to $1.48 billion, or 42 cents a share,' which are not facts but opinions.
    • But automotive revenye dropped 7% to $19.9 billion from $21.27 billion in the same quarter a year ago.
    • Net income at Tesla declined 45% to $1.48 billion, or 42 cents a share.
    • Revenue increased 2% from $24.93 billion a year earlier, Tesla said in an investor deck on Tuesday.
    • Tesla remains the top seller of electric vehicles in the U.S. by far, but is losing market share to a growing number of rivals.
    • The stock slid more than 8% in extended trading.
  • Fallacies (85%)
    The author makes an appeal to authority when stating that Tesla's system should be able to work anywhere in the world and not just in a geographically-limited area compared to Waymo's commercial robotaxi services. The author also uses inflammatory rhetoric when describing Waymo's services as 'limited' and 'fragile'.
    • > Tesla remains the top seller of electric vehicles in the U.S. by far, but is losing market share to a growing number of rivals due in part to its aging lineup of sedans and SUVs and the impact of Musk’s incendiary and political commentary.
    • The author describes Waymo's commercial robotaxi services as 'limited' and 'fragile'.
    • Tesla is increasing production at its existing factories, and plans to manufacture its robotaxi and Optimus at its headquarters in Austin, Texas.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla reports 45 percent decline in quarterly profit

The Fixing Site: A Summary of the Article. Trisha Thadani Tuesday, 23 July 2024 21:05
  • Unique Points
    • Tesla has not applied for any exemptions for a robotaxi in the United States as of last week
    • Plans for more affordable vehicle models remain on track for start of production in the first half of 2025
  • Accuracy
    • Tesla reported a 45% decline in quarterly profit to $1.48 billion for Q2 2023
    • CEO Elon Musk expects the first fully autonomous ride ‘possibly by the end of this year’ or ‘next year’
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

86%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla Earnings Fall 43%; Elon Musk Touts Autonomy (Live)

Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Tuesday, 23 July 2024 22:48
  • Unique Points
    • Tesla's vehicle volume growth rate in 2024 may be lower than the growth rate last year.
    • CEO Elon Musk confirmed that the robotaxi event has been pushed back from Aug. 8 to Oct. 10 and that there is an important design change to the front.
  • Accuracy
    • Tesla reported quarterly revenue of $25.5 billion, up 2% compared to the same quarter last year.
    • Quarterly revenue totaled $25.5 billion, up 2% compared to the same quarter last year.
    • Revenue was $25.50 billion vs expected $24.77 billion, an increase of 2% from the previous year.
  • Deception (70%)
    The article contains some selective reporting and emotional manipulation. The author focuses on the negative aspects of Tesla's earnings report, stating that earnings sunk more than 40% while sales came in above expectations. However, they fail to mention that revenue was up 2% compared to the previous year. Additionally, Musk's comments about the impact of Trump ending EV subsidies on competitors is an emotional manipulation as it creates a sense of fear and urgency for investors. The author also quotes Adam Jonas, a Tesla bull, who expresses skepticism about Tesla's outlook but does not provide any new information or insights.
    • Tesla stock fell in extended trade, with Chief Executive Elon Musk speaking on the conference call. Musk didn’t provide a lot new on the call, continuing to express optimism about self-driving, the Optimus robot and robotaxi.
    • Adam Jonas, Morgan Stanley’s high-profile autos analyst and a Tesla bull, writes that there is no big change in outlook and that Tesla is muddling through the EV recession.
    • Musk says that it is possible for unsupervised full self-driving by the end of 2024. I would be shocked if we cannot do it next year.
    • The earnings call ended with a question from the Wells Fargo analyst about what will happen if former President Donald Trump wins the 2024 election and does away with the Inflation Reduction Act, including the EV subsidies. Musk, who has endorsed Trump, says that would be devastating for our competitors
  • Fallacies (90%)
    The article contains some instances of inflammatory rhetoric and appeals to authority, but no explicit logical fallacies were found. Musk's statements about the impact of Trump ending EV subsidies on Tesla being 'devastating for our competitors' and his belief that Tesla's value is tied to autonomy are examples of inflammatory rhetoric. The statement 'Musk, who has endorsed Trump, says that it would be devastating for our competitors but that it would impact Tesla only slightly.' implies an appeal to authority as Musk's endorsement of Trump is not directly related to the validity of his statement about the impact on Tesla. However, these instances do not constitute logical fallacies and are therefore not sufficient to lower the score significantly.
    • ][Investor's Business Daily](https://www.investors.com/news/tesla-stock-earnings-q2-tsla-rally/)[] Musk, who has endorsed Trump, says that it would be 'devastating for our competitors' but that it would impact Tesla only slightly.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla Reports 45% Drop in Profits as AI Costs Rise, Vehicle Prices Fall

Investopedia Tuesday, 23 July 2024 23:26
  • Unique Points
    • Tesla is focusing on reducing the average cost per vehicle and developing projects in the AI space including robotaxi and humanoid robots.
    • Tesla plans to begin producing a more affordable vehicle by the first half of 2025.
  • Accuracy
    • Tesla reported a 45% decrease in profits compared to the same quarter last year.
    • Net income declined 45% to $1.48 billion or 42 cents a share from $2.7 billion or 78 cents a share in the second quarter of 2023.
    • Tesla reported better-than-expected deliveries for Q2, but they were still down from a year earlier for a second straight period.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication