Tesla TSLA earnings Q2 2024

Tesla reported weaker-than-expected earnings for the second quarter as automotive sales dropped for a second straight period. The stock slid more than 2% in extended trading.

• Earnings per share: 52 cents adjusted vs 62 cents expected, per LSEG consensus estimates.
• Revenue: $25.50 billion vs. $24.77 billion expected by LSEG

Revenue increased 2% from $24.93 billion a year earlier, Tesla said in an investor deck on Tuesday. But automotive sales dropped 7% to $19.9 billion from $21.27 billion in the same quarter a year ago. Auto sales included regulatory credits of $890 million, more than triple the figure from last year.

The company said it “recognized record regulatory credit revenues in Q2,” pointing to the fact that other automakers are “still behind on meeting emissions requirements.”

After a rocky first half of the year that saw Tesla cut more than 10% of headcount, the company reported better-than-expected deliveries for the second quarter earlier this month. However, deliveries were still down from a year earlier for a second straight period.

Tesla remains the top seller of electric vehicles in the U.S. by far, but is losing market share to a growing number of rivals due in part to its aging lineup of sedans and SUVs and the impact CEO Elon Musk’s incendiary and political commentary.

Tesla shares are down about 0.5% for the year at Tuesday’s close, while the Nasdaq is up about 20% over that stretch.

Rival automakers saw a 33% year-over-year jump in fully electric vehicle sales in the U.S. during the first half of 2024, while Tesla sales dropped by 9.6% in that time frame, according to data tracked by Cox Automotive, InsideEVs reported.

Net income at Tesla declined 45% to $1.48 billion, or 42 cents a share, in the second quarter from $2.7 billion, or 78 cents a share, a year earlier.

Revenue in Tesla’s energy generation and storage business, which sells and installs big backup batteries for residential, commercial and utility use, almost doubled from the same quarter a year ago to just over $3 billion. The company said its Megapack and Powerwall “achieved record deployment” in the period.

Of late, Musk has been in headlines more for his political views than for Tesla’s performance.

Musk has reportedly said he is planning to pledge about $45 million a month to a newly formed super political action committee backing former President Donald Trump, but has yet to donate to that group as of the end of June, according to its latest quarterly financial filing. Musk publicly endorsed Trump after the assassination attempt at a political rally on July 13.

While only 13% of Republican and right-leaning voters are interested in purchasing a fully electric vehicle this year, according to Pew Research, 45% of Democratic and…