Tesla Beats Q2 Profit Expectations... Vehicle Sales Increase Following Price Cuts

Tesla's net profit increased by 20% year-on-year in the second quarter of this year, driven by a rise in new car deliveries. Despite price cuts, vehicle sales increased, resulting in performance that exceeded expectations.

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Tesla announced on the 19th (local time) that its adjusted net profit for the second quarter was $3.1 billion, with earnings per share of $0.91, a 20% increase compared to the same period last year. This surpassed the $0.82 earnings per share forecast by market research firm Refinitiv. Revenue reached a record high of $24.9 billion, exceeding experts' expectations of $24.2 billion.

The gross margin for the automotive segment was 18.2%. Although there were predictions earlier this year that margins would fall below 17% due to vehicle price cuts, the results exceeded expectations. However, the gross margin declined compared to 25% a year ago before the price cuts and 19.3% in the first quarter of this year when the price reductions began.

With Tesla lowering vehicle prices earlier this year, new car sales in the second quarter increased by 83%. Automotive revenue rose by 47%. CNN analyzed this as Tesla leading the expansion of vehicle demand through price cuts.

Earlier in April, Tesla CEO Elon Musk also signaled that amid economic slowdown and intensified market competition, the company would prioritize revenue growth over profits.

Regarding the second-quarter results, Tesla described them as "solid," reflecting "(margins) that incorporate ongoing cost reduction efforts." It added, "We are focusing on cost reduction, new product development enabling future growth, research and development (R&D) investment, better automotive financing options, continuous product improvements, and cash flow generation."

Tesla's stock price has surged 136% since the beginning of the year as concerns over declining vehicle demand eased. On the day of regular trading, it closed at $291.26, down 0.71% from the previous trading day, and as of 5:20 p.m. in after-hours trading, it was up 0.22%.

This content was produced with the assistance of AI translation services.