{"id":30073,"date":"2024-07-25T02:09:00","date_gmt":"2024-07-25T07:09:00","guid":{"rendered":"https:\/\/ustower.net\/?p=30073"},"modified":"2024-07-25T02:47:01","modified_gmt":"2024-07-25T07:47:01","slug":"tesla-shares-plummet-after-company-reports-falling-profits","status":"publish","type":"post","link":"https:\/\/ustower.net\/?p=30073","title":{"rendered":"Tesla shares plummet after company reports falling profits"},"content":{"rendered":"\n

Shares of Tesla<\/a> fell 12% in early trading on Wednesday after an earnings release showed slumping profits in the face of strengthened competition and sluggish sales.<\/p>\n\n\n\n

The earnings report<\/a> fell short of Wall Street expectations for profit.<\/p>\n\n\n\n

\u201cThere have been quite a few competing electric vehicles that have entered the market and mostly, they have not done well, but they have discounted their EVs quite substantially, which has made it more a bit difficult for Tesla,\u201d Tesla CEO Elon Musk told analysts on Wednesday.<\/p>\n\n\n\n

Tesla shares plummeted<\/a> more than 25% at the outset of 2024 but the company had recovered all of those losses this month after it released a better-than-expected report on vehicle deliveries. The stock price decline on Wednesday puts shares at their lowest level in more than three weeks.<\/p>\n\n\n\n

The earnings results released on Tuesday mark two consecutive quarters of declining profits. Revenue from government credits increased to $890 million in the most recent quarter, accounting for more than half of the company\u2019s profits.<\/a><\/p>\n\n\n\n

Gordon Johnson, CEO and founder of data firm GLJ Research, who is bearish on Tesla, said the boost in revenue from government credits afforded the company a financial lifeline even as it struggled in its main line of business: selling vehicles.<\/p>\n\n\n\n

\u201cWhat is the core business doing?\u201d Johnson told ABC News, suggesting the decline in performance was even worse than the earnings indicate.<\/p>\n\n\n\n

Critics say demand for the company\u2019s vehicles has slowed as a result of its failure to release a new, affordable model, as well as a softening in the overall EV market. As competitors roll out alternatives, Tesla faces a difficult path to regain its previous breakneck growth, analysts previously told ABC News.<\/p>\n\n\n\n

Proponents, however, point to the company\u2019s record of industry-leading innovation, suggesting the breakthroughs that fueled its sprint ahead of the competition could reemerge as it readies for new EV models and perfects its autonomous driving software.<\/p>\n\n\n\n

Dan Ives, a managing director of equity research at the investment firm Wedbush, who is bullish on Tesla, downplayed the weaker-than-expected earnings report and highlighted potential gains from the company\u2019s development of autonomous vehicles.<\/p>\n\n\n\n

\u201cWe were not looking for major fireworks this quarter from Tesla,\u201d Ives said on Wednesday in a note to investors. \u201cThe next phase of the Tesla growth story is around autonomous, Robotaxis, and AI playing out for Musk\u00a0& Co. in our view and that vision is on the doorstep.\u201d<\/a><\/p>\n\n\n\n

Speaking to analysts on Tuesday, Musk said the company had made \u201ca lot of progress\u201d on its full self-driving software over the most recent quarter.<\/p>\n\n\n\n

\u201cWe think customers will experience a step-change improvement in how well supervised full self-driving works,\u201d Musk added.<\/p>\n\n\n\n

That product has faced challenges, however. In December, Tesla recalled<\/a> about 2 million cars over a safety issue tied to its autopilot system. Two months later, the company recalled<\/a> about 360,000 more cars over crash risks tied to its self-driving system. Musk said on Tuesday that the company is delaying the launch of its Robotaxi service until October.<\/p>\n\n\n\n

Johnson, of GLJ Research, voiced skepticism about the Robotaxi initiative.<\/p>\n\n\n\n

\u201cTesla doesn\u2019t have one Robotaxi on the road,\u201d Johnson said.<\/p>\n\n\n\n

abcnews<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Tesla fell 12% in early trading on Wednesday after an earnings release showed slumping profits in the face of strengthened competition and sluggish sales. The earnings report fell short of Wall Street expectations for profit. \u201cThere have been quite a few competing electric vehicles that have entered the market and mostly, they have not done well, but […]<\/p>\n","protected":false},"author":5,"featured_media":30074,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155],"tags":[4625,25410,1362],"class_list":["post-30073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-profits","tag-stock-price","tag-tesla"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/30073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30073"}],"version-history":[{"count":1,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/30073\/revisions"}],"predecessor-version":[{"id":30075,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/30073\/revisions\/30075"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/30074"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}