Tesla Earnings Show Core Business Struggles

3 months ago

Lisa Martell

"So we'll start with Tesla. TSLA down nearly 4%. So here's the thing. It was a record quarter of vehicle sales, but profit fell. That extended the string of weaker than expected profit to four quarters in a row. Now, on the earnings call, Elon Musk, he spoke about a few things. One, he talked about humanoid robots, he talked about A.I. programs. He also talked about self-driving technology. He asked investors to back his trillion dollar compensation package, too. But what he really failed to touch upon in what we're saying is that how Tesla is going to revive its core business of selling EVs. And they didn't get that there was a 40% drop in operating profit. So that was the issue there. Their operating expenses soared 50% to 3.4 billion in the quarter and tariff costs exceeding $400 million for Tesla."

The commentary highlights Tesla's disappointing earnings performance despite record vehicle sales, focusing on a 40% drop in operating profit and a 50% surge in expenses, with the speaker criticizing Elon Musk for not addressing how to revitalize the core EV business.

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