[GodelNumbering]

A lot of bad news

- 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)

[bryanlarsen]

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.

[wredcoll]

How much profit is from carbon credits?

[bryanlarsen]

Carbon credits aren't profit, they're revenue. You have to ship a car to claim the credits, they're not free money.

[akmarinov]

$500 million

[saaspirant]

No wonder they have opened a showroom in India

[decimalenough]

Teslas are stupidly unaffordable for the average Indian, especially with the 100% tariff currently in place for non-Indian car imports.

There has been talk for years of Tesla opening a local factory, but this remains just talk.

[freeopinion]

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.

[decimalenough]

Oh, I'm sure it doesn't, but my point is that there's no way sales in India will have a meaningful impact on Tesla's bottom line anytime soon.

[freeopinion]

Obvious math:

Population of US: ~340M

1 percenters of US: ~3.4M

1% of 1 percenters of US: ~34K

Population of India: ~1.4B

0.1 percenters of India: ~1.4M

1% of 0.1 percenters of India: ~14K

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.

[spacemadness]

Teslas are unaffordable for the average American as well. Assuming we consider buried in debt for 5+ years unaffordable.

[akmittal]

Tesla model Y starts at 70,000 USD in India. In india they wont sell well till India reduces import duty and they have price around 30-35K USD

[TheAlchemist]

The only reason the showroom in India was opened, is for Tesla influencers to pump it on Twitter.

[rtkwe]

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.

[toomuchtodo]

https://electrek.co/2025/07/02/tesla-confirms-cybertruck-sal...

> 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.

[barbazoo]

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.

[rtkwe]

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.

[danans]

Maybe they should have first done some market research on car buyers from Mars.

[philistine]

How can a car that has no sealed compartment be used on Mars if there are no affordances for the bulky suits?

This car's marketing touted it as a vehicle built for Mars and you somehow believed it hook line and sinker.

[barbazoo]

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.

[BobaFloutist]

There was this idea that they would be able to take individual steel sheets, cut them and fold them into shape with some interior welds to cheaply and efficiently manufacture the body. The stainless steel and the weird shape came from what they thought this process would require.

Then the process didn't work, but either marketing or just Musk we're already attached to the shape and aesthetic.

"Exoskeleton" is I think what they were calling it.

[Freedom2]

How do you charge it on Mars?

[rtkwe]

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.

[Freedom2]

That's fine, but by then the Cybertruck will likely be outdated. So I don't understand the assertion that the Cybertruck was "built for Mars" when there's no humans on Mars. And there's no evidence it's futureproofed to be suitable for Mars anyway.

[cyberge99]

Solar station.

[esseph]

No.

[SoftTalker]

Because it’s a ridiculous looking vehicle and not really practical as a truck. On top of that all the Elon hate.

[rtkwe]

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.

[TheAlchemist]

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 !

[mixdup]

Unsold new units do not depreciate. Of course they may discount them to move them but it's not depreciation like a used car

[rtkwe]

Their prices have been falling for new and they're competing against a lot of low milage regret purchases on the used market.

[SoftTalker]

They do, but the owner is the one who realizes it.

A "new" car that is last year's model will effectively hit the owner with a year's depreciation the moment they sign the sales contract.

[Zigurd]

Dodge Hornet?

[financetechbro]

@dang - why did my other comment asking about hallucinations get flagged? It was a genuine question

[financetechbro]

[flagged]