- Total revenue fell by 12% year-over-year (16% contraction in the core automotive segment)
- Operating margin fell to just 4.1% (was 6.3% a year ago)
- For a second straight quarter, production significantly outpaced deliveries. Global unsold inventories now at 24 days of supply (was 18 days a year ago)
- Free cash flow collapsed by nearly 89.1% to just $146 million
Despite all the bad news and missteps, Tesla is still profitable with tons of money in the bank. Lots of room to turn things around. The company is not going away any time soon.
That trillion dollar market cap, OTOH? That seems super vulnerable.
I doubt that Tesla intends to market to the average Indian. I'm not sure it has reached out to the average American, yet. I think it has, but only at the bottom of its target market.
So if you only target the extreme top of the wealth demographic in India, the numbers still matter. If you somehow convinced 1/2 of 1% of the millionaires in India to purchase a Cybertruck and donate it to a local mobile health clinic, you would increase global sales of Cybertrucks by 100%.
Is there any way sales in New Mexico will have a meaningful impact on Tesla's bottom line? West Virginia? South Carolina? There are more Tesla dealerships in New Mexico than in all of India.
I'm surprised the product backlog is so thin and I'd love it if they had broken that out. Months back there were seemingly huge backlogs of Cybertrucks piling up all over the place for example and I wonder if they are still piling up.
> Tesla has confirmed through its delivery report that Cybertruck sales have now dropped to ~5,000 units per quarter.
> After planning for a production capacity of over 250,000 units per year, Tesla is currently selling the pickup truck at a rate of ~20,000 units annually.
Was Cybertruck supposed to be a Mars vehicle first and consumer car second or vice versa or not related at all? I’m imagining Musk seeing the need for a Mars vehicle and gambling that maybe people on earth will like it too. In that context the whole debacle seems less severe.
The thing can barely handle unpaved hardened dirt tracks on Earth you think it was ever actually designed for completely undeveloped terrain like Mars?
The vehicle built for Mars is pure unadulterated marketing fluff just like the 'bullet proof' windows and siding that can only stop slow pistol rounds.
Oh I was just assuming, it’s not a strongly held belief.
I’m just trying to make sense of the situation. It’s a shit car, ugly as hell, everyone hates it, etc you don’t see that very often nowadays. Everything is usually so sterile and researched to death in advance. By the time it hits the market there is usually going to be some demand. It’s new to me that a billionaire just whips his dick around and does whatever he wants, market fit be damned.
If there are cars on Mars there's people and therefore power there too. It's completely unfit for purpose but Martian rovers will be electric if we ever go there that's guaranteed.
I know why it's happening I just wonder how long their inventory tail has grown at this point or if they have scaled back production to the point it's not threatening to take over every random parking lot in the nation.
They don't split the numbers among models - so it's stuck with the 'Other models' production. It is scaling back significantly - it was 24k cars produced in Q2 2024, down to 13k this Q.
Deliveries where ~3k lower than production each quarter, so there are 15k of them stuck somewhere. Given the pace of depreciation, they may even soon be available at the price Elon initially announced !
And this is *before* the regulatory credits went away 3 weeks ago, and *before* 7500$ / car subsides go away end of September. In Q3 Tesla will start seriously bleeding money.
Thing is, Tesla is not making much on each car they sell now, given how many discounts they need to offer. They were making a lot of money on regulatory credits, but these are likely to be gone already (in theory the companies should continue to buy them, but the Bill signed by Trump removes any penalties for not doing so effective immediately).
So yeah, sales may jump in the US (and will continue to crater in EU and China), but that won't do much for their profits. It can only help 'move the metal' as they say.
When does pumping that stock up go from fiduciary duty to fraud? Musk is bad for the company yet Musk as CEO props up the meme stock. Is it fraud to keep on Musk then?
"In 2018 the SEC reached a settlement with Musk and Tesla after finding that Musk had deceived investors when he tweeted out that he had “funding secured” to take Tesla private. Under that settlement Tesla and Musk both paid fines of $20 million, and Musk agreed to have his tweets about material events at the company approved by others at Tesla. He also gave up the title of chairman of Tesla, although he retained the CEO title."
"In April 2022, Musk disclosed he had purchased 9% of the shares of Twitter ahead of his purchase of the entire company later that year. The SEC sent him a letter wanting to know why he had not disclosed those purchases within 10 days of crossing the 5% threshold of shares owned, as required by securities law."
From what you linked, Audi is down 19%, Rivian down 22%, Volkswagen down 20%. Audi and Rivian are both luxury brands and so is Tesla. Rivian is also a higher end car brand and they are getting cooked, down far more than Tesla, and don't suffer any of the Elon stigma.
The brands you mentioned are bargain brands. Tesla is a luxury vehicle. Answer seems pretty obvious. Also Tesla is not generally going to sell to apartment renters very often as there typically are not places to charge, so I personally think part of it is that there is a diminishing pool of possibile customers.
I’m on the list for an R2S to replace my Model 3, but it won’t be available until 2026 sometime at the earliest. Rivian’s problem is that they make one expensive car (in truck and SUV variants), and their market for that is saturating. Meanwhile I am literally trying to give them my money for a smaller SUV and they can’t make it fast enough. Not sure any of these problems are relevant to Tesla, which has a bunch of models that it can produce (and aren’t selling.)
> Audi and Rivian are both luxury brands and so is Tesla.
Tesla is pretty widely regarded as non-luxury. If not for their price, they'd probably best fit into economy class. At best, only the model S and X would be considered luxury cars, and look at how the sales of those have totally cratered.
I do agree with this, it's not really convenient if you don't own a home. Also, where I live, electricity is expensive, and car insurance on Tesla's are also high, and gas prices are pretty low.
- Total revenue fell by 12% year-over-year (16% contraction in the core automotive segment)
- Operating margin fell to just 4.1% (was 6.3% a year ago)
- For a second straight quarter, production significantly outpaced deliveries. Global unsold inventories now at 24 days of supply (was 18 days a year ago)
- Free cash flow collapsed by nearly 89.1% to just $146 million
source: https://www.signalbloom.ai/news/TSLA/teslas-q2-revenue-drops... (disclaimer: I run this)