Quarterly Figures: Tesla Profit Falls Sharply In Q2 2024 - Shares Under Pressure

Austin, USA - US electric car manufacturer Tesla, which is listed on the RENIXX World renewable share index, has presented its figures for the second quarter of 2024 (Q2 2024).

Compared to the same period last year, sales remained stable with deliveries increasing. Profits, on the other hand, plummeted. The share is coming under pressure this morning following the recovery of recent weeks.

Overall, the US electric vehicle manufacturer generated revenue of USD 25.5 billion in the second quarter of 2024. Compared to the same quarter of the previous year, this represents a slight increase of around 2 percent (Q2 2023: USD 24.93 billion). Revenue growth is supported by the growing importance of the energy business, which doubled year-on-year by 100 percent to USD 3.01 billion (Q2 24: USD 1.51 billion).

Net profit in Q2 24 amounted to USD 1.48 billion in accordance with GAAP accounting standards, which corresponds to a sharp decline of minus 45 percent compared to the same quarter of the previous year (Q2 23: USD 2.7 billion). Following the 55 percent drop in profits in Q1 2024 to USD 1.13 billion (Q1 23: USD 2.5 billion), this is the second sharp decline in profits in a row for Tesla. On a non-GAAP basis, profit in Q2 24 is 42 percent worse at USD 1.81 billion (Q2 2023: USD 3.15 billion).

On a GAAP basis, earnings per diluted share amounted to USD 0.42 in Q2 24, a decrease of 46 percent compared to Q2 23 (Q2 2023: USD 0.78). On a non-GAAP basis, earnings per share amounted to USD 0.52 (Q2 2023: USD 0.91).

Tesla had already announced at the beginning of July that a total of 410,831 vehicles were produced and 443,956 vehicles delivered in the second quarter of 2024. This means that Tesla's production is around 5 percent below the previous quarter's figures, while sales are up by around 15 percent.

Tesla continues to face a number of challenges in the second quarter of 2024. Global sales of electric vehicles remain under pressure, as many potential buyers are currently hesitant to purchase a vehicle due to the high cost level. This is compounded by growing competition, particularly from Asia. Tesla is countering the falling demand with price reductions. The balance sheet is also burdened by high restructuring costs and an increase in operating expenses, mainly due to Tesla's AI projects.

Under the impression of the weak quarterly figures, Tesla shares are falling this morning and are currently down 7.6 percent at a price of 211.25 euros. (10:47 a.m., 24.07.2024, Stuttgart Stock Exchange).

Source: IWR Online, 24 Jul 2024