Tesla shares fall after weak earnings report

Tesla shares fell 12 percent on Wednesday after the electric vehicle maker’s second-quarter earnings fell short of expectations.

The company, led by billionaire technology mogul Elon Musk, had revenues of US$25.5 billion in the three-month period between April and June, an increase of 2% compared to the same period last year.

However, Tesla’s net profit fell 45 percent, from $2.7 billion in the second quarter of 2023 to $1.5 billion in the second quarter of 2024, despite efforts to cut costs, including widespread layoffs. .

In April, Musk announced plans to cut more than 10% of the company’s global workforce.

“As we prepare the company for our next phase of growth, it is extremely important to analyze all aspects of the company to reduce costs and increase productivity,” he said in a memo to employees at the time.

“As part of this effort, we undertook a complete review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” Musk added.

The weak earnings report also follows a weak performance from the electric vehicle maker in the first quarter. Tesla’s net profit fell 55% in the three-month period between January and March.

However, Tesla shares rose on first-quarter results after Musk said the company planned to bring forward production of its smaller, more affordable models.

This story originally appeared on thehill.com read the full story