Tesla’s net profit fell 6.5% in the first half of the year

Two Tesla Model 3s, for sale at a Tesla dealership in Long Beach, California, in May.Mike Blake (Reuters)

On Wednesday, the American manufacturer of electric cars, Tesla, announced a 20% increase in net profit in the second quarter of the year, to $ 2,700 million, in the wake of sales driven by lower prices. As expected by analysts, these cuts slightly capped growth for Elon Musk’s company, posting an increase of 18.2% compared to 19.3% in the first quarter. The result was just below Wall Street’s estimate (18.8%), but well below last year’s 25% margin, adding new dark clouds to the businessman’s management. Also the owner of Twitter and space company SpaceX.

But if the focus is extended into the beginning of the year, net interest would have fallen 6.5% in the first half of 2023 to stand at $5,216 million. In the January-June period, revenue was 48.256 million, up 35.2 percent from 2022. In the second quarter, on the other hand, revenue fell to 21.268 million.

Musk reiterated that he’s comfortable sacrificing profitability for the sake of sales volume, and the second quarter data seems to prove him right. The company announced record deliveries of cars, all in the luxury segment. He also ensured that there were better days to come: Tesla is investing in ramping up battery production, in a new Cybertruck model and in other large growth-oriented projects.

“It makes sense to sacrifice margins in favor of building more vehicles because we believe that in the not too distant future they will have a significant valuation increase,” Musk said. China is one of the markets you are betting on. As evidenced by his recent official visit, almost as a statesman, to the Asian giant.

But investors responded negatively to the weak earnings. Additionally, Musk said that production in the current quarter will “drop a little bit” as Tesla makes factory improvements. Shares fell 3.6% in extended market trading.

Tesla built 479,700 vehicles in the second quarter of this year, up from 258,580 in the same period of 2022 and 440,808 between January and March. “We plan to increase production as soon as possible,” the company said in a statement in the results statement. “Some years we will be able to increase faster and others slower,” he said. By 2023, we hope to progress [en las previsiones] About 1.8 million vehicles for this year.” Deliveries reached 466,140 vehicles in the quarter, compared to 254,695 in the previous year.

“We have plenty of cash to fund our long-term project agenda to increase the capacity of our plants and other expenses,” the manufacturer confirmed.

Sales increased by 47% to €24,920 million, thanks to an increase in deliveries and growth in other divisions of the group, but the bottom line at the fund was impacted unfavorably by lower average selling price for various categories. Forms and exchange rates. At the end of last year, the manufacturer announced a significant price cut for the Model 3 and Model Y in the United States. Tesla car buyers in Canada, Mexico and, to a lesser extent, China, were also able to take advantage of special offers in line with the local market.

Based on the Pick up An electric e-truck, which will be the company’s new bet and will leave Tesla’s huge factory in Texas, the company confirmed that production will start according to schedule, at the end of the year.

Incidents involving their models – The last time, the day before yesterday, reviewing thousands of cars for malfunctions or doubts about their safety, and finally Musk’s erroneous behavior, has cast doubt on Tesla’s performance, Last year there was a severe bump, in continuous loops, in the stock market. It was the stock market’s worst streak since 2018, with a loss of 70% of its value.

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