- Total revenue fell by 12% year-over-year (16% contraction in the core automotive segment)
- Operating margin fell to just 4.1% (was 6.3% a year ago)
- For a second straight quarter, production significantly outpaced deliveries. Global unsold inventories now at 24 days of supply (was 18 days a year ago)
- Free cash flow collapsed by nearly 89.1% to just $146 million
Despite all the bad news and missteps, Tesla is still profitable with tons of money in the bank. Lots of room to turn things around. The company is not going away any time soon.
That trillion dollar market cap, OTOH? That seems super vulnerable.
I doubt that Tesla intends to market to the average Indian. I'm not sure it has reached out to the average American, yet. I think it has, but only at the bottom of its target market.
So if you only target the extreme top of the wealth demographic in India, the numbers still matter. If you somehow convinced 1/2 of 1% of the millionaires in India to purchase a Cybertruck and donate it to a local mobile health clinic, you would increase global sales of Cybertrucks by 100%.
Is there any way sales in New Mexico will have a meaningful impact on Tesla's bottom line? West Virginia? South Carolina? There are more Tesla dealerships in New Mexico than in all of India.
I'm surprised the product backlog is so thin and I'd love it if they had broken that out. Months back there were seemingly huge backlogs of Cybertrucks piling up all over the place for example and I wonder if they are still piling up.
> Tesla has confirmed through its delivery report that Cybertruck sales have now dropped to ~5,000 units per quarter.
> After planning for a production capacity of over 250,000 units per year, Tesla is currently selling the pickup truck at a rate of ~20,000 units annually.
Was Cybertruck supposed to be a Mars vehicle first and consumer car second or vice versa or not related at all? I’m imagining Musk seeing the need for a Mars vehicle and gambling that maybe people on earth will like it too. In that context the whole debacle seems less severe.
The thing can barely handle unpaved hardened dirt tracks on Earth you think it was ever actually designed for completely undeveloped terrain like Mars?
The vehicle built for Mars is pure unadulterated marketing fluff just like the 'bullet proof' windows and siding that can only stop slow pistol rounds.
Oh I was just assuming, it’s not a strongly held belief.
I’m just trying to make sense of the situation. It’s a shit car, ugly as hell, everyone hates it, etc you don’t see that very often nowadays. Everything is usually so sterile and researched to death in advance. By the time it hits the market there is usually going to be some demand. It’s new to me that a billionaire just whips his dick around and does whatever he wants, market fit be damned.
There was this idea that they would be able to take individual steel sheets, cut them and fold them into shape with some interior welds to cheaply and efficiently manufacture the body. The stainless steel and the weird shape came from what they thought this process would require.
Then the process didn't work, but either marketing or just Musk we're already attached to the shape and aesthetic.
"Exoskeleton" is I think what they were calling it.
If there are cars on Mars there's people and therefore power there too. It's completely unfit for purpose but Martian rovers will be electric if we ever go there that's guaranteed.
That's fine, but by then the Cybertruck will likely be outdated. So I don't understand the assertion that the Cybertruck was "built for Mars" when there's no humans on Mars. And there's no evidence it's futureproofed to be suitable for Mars anyway.
That was pure dumb marketing fluff through and through just combining two things Musk routinely hyped at the time Mars and electric cars. The thing can barely handle packed dirt trails much less untouched Martian terrain it's completely unfit for off roading.
I know why it's happening I just wonder how long their inventory tail has grown at this point or if they have scaled back production to the point it's not threatening to take over every random parking lot in the nation.
They don't split the numbers among models - so it's stuck with the 'Other models' production. It is scaling back significantly - it was 24k cars produced in Q2 2024, down to 13k this Q.
Deliveries where ~3k lower than production each quarter, so there are 15k of them stuck somewhere. Given the pace of depreciation, they may even soon be available at the price Elon initially announced !
And this is *before* the regulatory credits went away 3 weeks ago, and *before* 7500$ / car subsides go away end of September. In Q3 Tesla will start seriously bleeding money.
Thing is, Tesla is not making much on each car they sell now, given how many discounts they need to offer. They were making a lot of money on regulatory credits, but these are likely to be gone already (in theory the companies should continue to buy them, but the Bill signed by Trump removes any penalties for not doing so effective immediately).
So yeah, sales may jump in the US (and will continue to crater in EU and China), but that won't do much for their profits. It can only help 'move the metal' as they say.
The decline corresponds with Musk interfering in European politics and performing fascist salutes at a political rally. Europeans aren't on board with swasticars.
The brand damage Musk has done can only start to be repaired after he leaves Tesla. The bad reputation is going to stick until then.
> Tesla sales continued to go down in Europe in the first half of the year.
The American EV maker recorded a 33% year-over-year drop in sales from January to June.
> From January to June, Tesla sold 108,878 cars in the region, while Volkswagen moved 133,465 EVs, a massive 78% year-over-year increase.
Look for the data table and note the heading "Difference from H1 2024"
> Overall, the European EV market increased by 24% year-over-year
The article you linked to explains how the VW brand has exceeded Tesla in sales. And Volkswagen Group owns many brands (VW, Audi, Skoda, SEAT, Cupra, Porsche, etc.).
It says right in the article: "For what it’s worth, Tesla was the best-selling EV company in Europe in June,"
So, if your supposition that Tesla wasn't going to regain what they once had, why were they once again #1 in EV sales in June? If they won't drive Swaticars why did they buy more of them than any other EV brand in June?
That's a highly selective read when the data shows Tesla dropping for the past six months, sales declining, even in June, and last month (June) likely not yet having a complete up to date third party picture across the board.
The part left out from your statement about June:
but that wasn’t enough to end the first half of the year in the first spot.
In fact, out of the top five best-selling EV makers in June, Tesla was the only one to see a drop.
With 32,605 cars sold, Tesla sales went down by 21% year-over-year in Europe.
Meanwhile, Volkswagen went up 9.%, BMW by 16%, Skoda by 189% and Renault by 23%.
confirms that Europeans are indeed moving away from "swasticars" in general despite some Europeans still buying a few.
I mean the business is suffering as all measures of profit and revenue have also dropped. They may have also increased capex, but doing that at the same time as income is cratering is not necessarily sound financial decision making. Especially when that capex is in "new" lines of business like AI that are unrelated to the manufacture of automobiles
When does pumping that stock up go from fiduciary duty to fraud? Musk is bad for the company yet Musk as CEO props up the meme stock. Is it fraud to keep on Musk then?
"In 2018 the SEC reached a settlement with Musk and Tesla after finding that Musk had deceived investors when he tweeted out that he had “funding secured” to take Tesla private. Under that settlement Tesla and Musk both paid fines of $20 million, and Musk agreed to have his tweets about material events at the company approved by others at Tesla. He also gave up the title of chairman of Tesla, although he retained the CEO title."
"In April 2022, Musk disclosed he had purchased 9% of the shares of Twitter ahead of his purchase of the entire company later that year. The SEC sent him a letter wanting to know why he had not disclosed those purchases within 10 days of crossing the 5% threshold of shares owned, as required by securities law."
From what you linked, Audi is down 19%, Rivian down 22%, Volkswagen down 20%. Audi and Rivian are both luxury brands and so is Tesla. Rivian is also a higher end car brand and they are getting cooked, down far more than Tesla, and don't suffer any of the Elon stigma.
The brands you mentioned are bargain brands. Tesla is a luxury vehicle. Answer seems pretty obvious. Also Tesla is not generally going to sell to apartment renters very often as there typically are not places to charge, so I personally think part of it is that there is a diminishing pool of possibile customers.
I’m on the list for an R2S to replace my Model 3, but it won’t be available until 2026 sometime at the earliest. Rivian’s problem is that they make one expensive car (in truck and SUV variants), and their market for that is saturating. Meanwhile I am literally trying to give them my money for a smaller SUV and they can’t make it fast enough. Not sure any of these problems are relevant to Tesla, which has a bunch of models that it can produce (and aren’t selling.)
> Audi and Rivian are both luxury brands and so is Tesla.
Tesla is pretty widely regarded as non-luxury. If not for their price, they'd probably best fit into economy class. At best, only the model S and X would be considered luxury cars, and look at how the sales of those have totally cratered.
I do agree with this, it's not really convenient if you don't own a home. Also, where I live, electricity is expensive, and car insurance on Tesla's are also high, and gas prices are pretty low.
- Total revenue fell by 12% year-over-year (16% contraction in the core automotive segment)
- Operating margin fell to just 4.1% (was 6.3% a year ago)
- For a second straight quarter, production significantly outpaced deliveries. Global unsold inventories now at 24 days of supply (was 18 days a year ago)
- Free cash flow collapsed by nearly 89.1% to just $146 million
source: https://www.signalbloom.ai/news/TSLA/teslas-q2-revenue-drops... (disclaimer: I run this)