Tesla’s drop in sales over the past 18 months has been an impressive turnaround for a company that only registered a quarterly fall of sales, year after year, before 2024. And the company faces significant problems in the future.
Investors already know that the second quarter sales have fallen one compared to the previous year, the second consecutive quarter in which sales fell at least 13%.
But a second -quarter results report, which is expected to be presented after the market closure, could reveal other potentially higher problems as the company faces the loss of its world’s largest electric vehicle manufacturer to China’s BYD.
The drop in sales of the first trimester caused a thin drop of 71% in net income during this period. Tesla is expected to record another decline in the second quarter, though not so large. Analysts estimate that net income fell about $ 350 million, or almost 24%from March to June.
However, the $ 7,500 tax credit for US electric vehicle buyers will cease to exist in October, which could force the company to further reduce prices and, consequently, profit margins, to support sales. US buyers represent almost half of Tesla’s sales.
Tariffs can also affect. Unlike all other major car manufacturers, Tesla () builds all the cars it sells in the US in its two American factories, which helps it avoid importing 25%import tariffs. But Tesla depends on imported pieces and raw materials, which are still subject to tariffs. Last week, the Chinese graffiti used in their batteries was subject to another fare that compared to last year.
Perhaps the most serious financial problem that Tesla faces is the elimination of the sales market, which has fueled $ 10.6 billion for the company’s financial results since 2019. In the past, gas -powered manufacturers bought Tesla emissions credits as their EVs were below emission limits. But the republican bill of taxes and spending approved earlier this month removed financial penalties for brands that violate emission rules.
Tesla would have in the first three months of the year without revenues from the sale of these credits.
Tesla Executive Director Elon Musk will undoubtedly try to focus investors’ attention in the company’s plans for robotáxis and humanoid robots in order to compensate for these concerns. In June, Tesla started a service of – but only in part of her hometown, Austin, Texas, for friends and fans of the company, and with an employee sitting next to the driver’s empty place. You can spend years until a robotaxi service effectively makes a profit to the company.
And there is still a risk factor: three months ago, Tesla’s quarterly profits were dominated by the news that it would spend most of their time managing Tesla. But although he has removed from an official function, he was unable to completely abandon politics, having since had a quarrel with President Donald Trump. Now it has announced plans to start one. What this can mean for the future of Tesla herself is, at best, obscure.
