Tesla Q2 Earnings Report Reveals 45% Profit Drop Amid Weak E.V. Sales

Tesla on Tuesday reported a 45 percent drop in profit in the three-month period between April and June, a result of the electric car company’s sluggish sales.

The automaker said it earned $1.5 billion in the second quarter of the year on revenue of $25.5 billion. In the second quarter of 2023, Tesla made $2.7 billion and had revenue of $24.9 billion.

The company’s current operating profit margin, a measure of how much money it makes on every dollar of revenue, was 6.3 percent, compared with 9.6 percent in the same period a year ago.

The results will most likely heighten pressure on Tesla and its chief executive, Elon Musk, to show that the company can find new ways to grow and make money.

Tesla shares have jumped 40 percent since the end of the May in large part because investors are betting that Mr. Musk will successfully remake Tesla into an artificial intelligence company that operates a driverless taxi service and sells robots for manufacturing and other tasks.

The company’s bottom line was helped by sales of regulatory credits to other automakers that need them in order to meet emissions standards. Tesla sold $890 million in credits in the second quarter, up from $282 million a year earlier.

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