Tesla Reports 16% Drop in Quarterly Profit Amid Slowing EV Sales

Tesla reported a 16% decrease in net income for the second quarter, reflecting ongoing challenges in its core electric vehicle business. The company also saw a 13.5% drop in vehicle sales compared to the same period last year, while total automotive revenue fell 16%. Revenue from energy generation and storage declined by 7%, but services and other revenue increased by 17%.

The company highlighted its expansion into artificial intelligence, robotics, and related services, describing the quarter as a significant transition point. Tesla recently launched the first version of its robotaxi service in Austin and is developing a humanoid robot named Optimus, with the earnings report stating these initiatives are designed for rapid scaling and improved profitability.

Tesla's market share in the U.S. electric vehicle sector has declined, now accounting for 46.2% of EV sales, down from nearly 80% previously, as traditional automakers and Chinese manufacturers gain ground. The company has also experienced executive turnover, losing three senior leaders in the past two months.

Earlier this month, Tesla delayed its annual shareholder meeting to November after a group of large shareholders raised concerns about board oversight. The meeting had originally faced a July deadline under Texas law. Tesla's share price declined slightly in after-hours trading following the earnings announcement.