Tesla’s (TSLA) stock is down 3% after the company reported lower second quarter margins due to price cuts and other incentives offered on its electric vehicles.
Tesla announced revenue of $24.93 billion U.S. for Q2 versus $24.47 billion U.S. expected among Wall Street analysts, according to Refinitiv data.
Earnings per share came in at $0.91 U.S. compared to $0.82 U.S. that was forecast.
Net income rose 20% to $2.70 billion U.S., but operating income declined 3% from a year ago to $2.40 billion U.S.
During a call with analysts and media, Tesla chief executive officer (CEO) Elon Musk failed to provide a start date for deliveries of the company’s highly anticipated Cybertruck, as well as for a long gestating robotaxi.
Musk also said that Tesla’s vehicle production would slow down during the current third quarter due to shutdowns for factory improvements.
Tesla continues to target 1.8 million vehicle deliveries for all of this year. Earlier in July, Tesla reported 466,140 total vehicle deliveries for Q2.
The Q2 deliveries were driven largely by price discounts and other incentives. Consequently, operating margins came in at 9.6%, the lowest level for the last five quarters.
Total gross margins at Tesla during Q2 stood at 18.2%, also a recent low for the company.
Musk said on the earnings call that Tesla plans to spend more than $1 billion U.S. on “Dojo,” a supercomputer that the company is developing for artificial intelligence (A.I.) machine learning.
Tesla’s stock is up 18% over the last 12 months and trading at $291.26 U.S. per share.
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