Tesla profits slide amid sales decline, aggressive price cuts

AutoExec Summary
The automotive profit margins of Tesla have dropped to their lowest levels in over five years due to price cuts on electric cars and a decrease in global deliveries. Despite an increase in revenue from other products, Tesla earned 7% less from its automotive business in the second quarter of 2024 compared to the same period in 2023. Sales of Tesla electric cars have declined by 4.8% over the past three months and are down by 6.6% since the beginning of the year. This marks the first sales decline in the brand’s history. Competition from cheaper Chinese models has led to aggressive price cuts by Tesla, impacting its profit margins. Revenue from emissions credits has helped offset the impact of slower sales. Tesla remains optimistic about the future of electric vehicles despite short-term challenges.

Brands mentioned: Tesla