Tesla reports 7% drop in automotive revenue

Tesla reported a 7% drop in automotive revenue (to US$19.9 billion) and a 2% increase in annual revenue (to US$25.50 billion) for the second quarter.

Shares declined more than 8% with Tesla reporting weaker-than-expected earnings for Q2 as automotive sales dropped for a second straight period, CNBC reports.

Tesla says it “recognised record regulatory credit revenues in Q2,” saying that other automakers are “still behind on meeting emissions requirements”.

After a tough first half of the year which saw Tesla cut more than 10% of staff, the company reported better-than-expected deliveries for the second quarter earlier, although deliveries were still down from a year ago for a second straight period.

Chief executive Elon Musk says Tesla will host a robotaxi unveiling on October 10 when it was initially planned on August 8 and says he hopes robotaxi rides will start in 2025.

It’s also working on a CyberCab robotaxi.

Musk doesn’t expect regulatory issues in rolling out Tesla’s self-driving technology.

Tesla remains the top US EV seller and, during Q2 offered incentives to boost demand which impacted its profitability, says CNBC.

It says revenue in Tesla’s energy generation and storage business almost doubled from the same quarter a year ago to just over US$3 billion – its Megapack and Powerwall doing well in Q2.

During the quarter Tesla increased production of its Cybertruck, reckoning it’s likely to achieve profitability by the end of 2024.

Musk expects Tesla will have some robots in its factories next year with more available for use by other companies in 2026.

Meanwhile, Tesla appears to have paused plans to produce EVs in Mexico pending the US presidential election outcome on November 5 this year.

You can listen to Tesla’s Q2 earnings call here.