Tesla, the American electric vehicle manufacturer, reported a revenue increase in the second quarter of this year, driven by a rise in vehicle sales that exceeded market expectations. However, profitability declined due to price cuts and increased investments in artificial intelligence (AI).
On July 22, Tesla announced that its Generally Accepted Accounting Principles (GAAP) net income for the second quarter was $1.114 billion, a 5% decrease from the same period last year. The adjusted earnings per share (EPS) was 33 cents, significantly below the market forecast of 51 cents.
In contrast, revenue and vehicle sales saw substantial growth. Second-quarter revenue reached $28.24 billion, a 26% increase from the previous year, surpassing the market expectation of $25.71 billion. Vehicle deliveries also rose by approximately 25%, totaling 480,126 units.
The decline in profit despite increased sales was attributed to price reductions and rising costs. Revenue from selling carbon credits to other automakers also decreased. Tesla's gross margin for its automotive segment was 16.3%, falling short of the market expectation of 18.04%.
Significant investments in AI projects, including autonomous driving and robotics, have also strained cash flow. Capital expenditures for the second quarter reached $5.8 billion. After accounting for operational and investment expenses, the free cash flow recorded a deficit of $1.1 billion, marking the first quarterly free cash flow deficit in over two years.
Tesla CEO Elon Musk stated, "We plan to invest more than $25 billion this year to expand our AI initiatives, including autonomous driving and robotics," which is nearly three times last year's capital expenditures of $8.53 billion.
Following the earnings report, Tesla's stock fell approximately 2.5% in after-hours trading.
* This article has been translated by AI.
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