Tesla shares tumbled more than eight percent early Thursday after it reported lower profits and CEO Elon Musk warned the company faced more potentially “rough” quarters ahead.
Near 1415 GMT, Tesla shares were at $304.15, down 8.4 percent.
Tesla reported second-quarter profits of $1.2 billion, down 16 percent from the year-ago level, its third quarter in a row in which profits fell.
Musk, on an earnings conference call, suggested the company’s recent slump would continue or worsen in a difficult interim period until new autonomous transport ventures can be monetized. The company expects lower sales after a $7,500 federal tax credit for electric vehicle purchases expires on September 30 under legislation signed into law by President Donald Trump.
“We probably could have a few rough quarters,” said Musk, while adding Tesla’s business proposition will be “very compelling” once its autonomy operations are scaled up.
Musk donated more than $270 million to Trump’s successful 2024 presidential campaign. But Trump’s giant fiscal package has been a source of a recurring feud between the billionaire and the US president.
Trump, who has floated deporting Musk following earlier recriminations between the men, appeared to offer an olive branch on Thursday, insisting on social media that he will not “destroy” Musk’s business by taking away subsidies.
“I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before! The better they do, the better the USA does, and that’s good for all of us.”
By Agencies
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