Earnings at Musk's Tesla fall as spending on research cuts into profit from selling cars
Summary
Tesla's profits dropped in the second quarter because the company spent a lot more on research and development, even though car sales increased sharply. Tesla made $1.11 billion in profit and revenue rose 26%, but earnings per share were below Wall Street expectations due to higher spending on new technologies like robotaxis and robots.Key Facts
- Tesla's second-quarter net income was $1.11 billion, or 32 cents per share.
- Revenue increased 26% to $28.24 billion, exceeding analysts' predictions.
- Earnings per share, excluding some items, were 33 cents, lower than the expected 53 cents.
- Research and development spending rose 49% to $2.37 billion compared to last year.
- Tesla plans to increase spending on factories, robotaxis, AI systems, and the Optimus humanoid robot over the next 2-3 years.
- Tesla delivered 480,216 cars in the second quarter, a 25% increase from last year.
- The Full Self-Driving (FSD) subscription service has nearly 1.5 million users worldwide.
- Tesla started production of the Cybercab in Texas and aims to begin Tesla Semi production this year in Nevada.
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