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Tesla’s profits sank sharply in the second quarter of 2024 | The company’s revenue increased by 2 percent compared to last year, but profits are down 45 percent year over year (www.theverge.com)

submitted 3 months ago by ForgottenFlux@lemmy.world to c/technology@lemmy.world

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Tesla published its second quarter earnings report, in which the company said it earned $1.48 billion in net income on $25.5 billion in revenue. That represents a 2 percent increase year over year compared to $24.9 billion in revenue in Q2 2023 but a 45 percent drop in net income.

Tesla’s gross margins were in the spotlight again, as bullish investors hoped to see improvements after years of steady decline. Rampant price cutting and cooling demand as well as cheaper financing have pushed the company’s once-vaunted margins to their lowest point in six years.

It has unquestionably been a whiplash of a quarter for the company. Tesla abandoned its plan to build a more affordable “Model 2” vehicle — and then recommitted to it. Musk announced a robotaxi reveal event for August but then delayed it until October. The company embarked on a massive series of layoffs, including the entire Supercharger team, and then hired many people back. Tesla’s advanced driver-assist technology came under harsh scrutiny after a previous recall failed to prevent driver misuse. And Tesla shareholders again approved a massive pay package for Elon Musk, after a judge tossed out the first one.

On top of all that, Musk endorsed Donald Trump for president, inserting his companies into a fraught political environment that is likely to have repercussions for Tesla’s sales and brand reputation.

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[-] sundray@lemmus.org 74 points 3 months ago* (last edited 3 months ago)

Wow, Elon's really earning that 45 ~~million~~ billion pay package. 🙄

Edited to fix the number -- thanks @RCTreeFiddy@lemmy.world !

[-] RCTreeFiddy@lemmy.world 46 points 3 months ago* (last edited 3 months ago)

Add three more zeros to that number, friend.

[-] gravitas_deficiency@sh.itjust.works 23 points 3 months ago

Did that comp package actually get passed by the board? If so: Lmao jesus christ every single one of those fuckers deserves to be absolutely fleeced

[-] Buffalox@lemmy.world 3 points 3 months ago

56 Billion:
https://www.reuters.com/business/autos-transportation/musk-says-both-tesla-shareholder-resolutions-passing-by-wide-margins-2024-06-13/

[-] sundray@lemmus.org 2 points 3 months ago

Yikes, it's even worse than I thought!

[-] tinfoilhat@lemmy.ml 59 points 3 months ago

Maybe it's because the Cybertruck is a piece of shit, and so is Elon

[-] shalafi@lemmy.world 49 points 3 months ago

I honestly don't know how their stock hasn't completely tanked, one clusterfuck after another. Quality is shit, the Cyber Truck is all but finished, CEO is fruity, etc.

And to top it off, they struggle to produce the product. Seems everything is on a waiting list.

[-] HK65@sopuli.xyz 29 points 3 months ago

Stock valuations are based on Wall Street feefees, not the actual economic performance of a company. Even if said economic performance is shit, it only affects stock prices as much as institutional bankers feel like it should.

It's basically a casino run by the super rich, and people in the US get their retirements in its chips.

[-] ShittyBeatlesFCPres@lemmy.world 13 points 3 months ago

You’re not wrong but Tesla is probably more of a meme stock at this point. We might not be able to blame Wall Street for this one. There’s a lot of retail investors in Tesla stock because they think Elon is a super brain genius despite all evidence to the contrary.

[-] amanda@aggregatet.org 3 points 3 months ago

I’m not in the US and I also get most of my retirement in stock market casino chips

[-] cheese_greater@lemmy.world 41 points 3 months ago* (last edited 3 months ago)

Can Tesla cars still run client-side ~~if~~ when the grift cycle completes and Tesla goes bankrupt?

[-] Dudewitbow@lemmy.zip 25 points 3 months ago

you dont need a cellular connection for it to function, just a decent chunk of its software options would stop working (for obvious reasons). and the built in maps would stop updating

[-] Artyom@lemm.ee 9 points 3 months ago

A friend of mine recently told me that your seat position is stored server-side in case you own multiple Teslas, so if Tesla goes belly up, it's possible you won't be able to save your seat settings.

[-] somethingsnappy@lemmy.world 2 points 3 months ago

If you think that's the worst that will happen whether or not they fold...

[-] JeeBaiChow@lemmy.world 36 points 3 months ago

1.4b profit/quarter is just under 6b/year. How did he justify his 57b (ish) compensation package? Are Tesla shareholders morons?

[-] MaggiWuerze@feddit.org 26 points 3 months ago

[-] Naich@lemmings.world 33 points 3 months ago

You aren't giving Elon enough money. Sacrifice another 47 billion to your weird terfy god.

[-] Buffalox@lemmy.world 26 points 3 months ago* (last edited 3 months ago)

LOL Shareholders stupidly granted Musk a $56 billion bonus.
At the rate of this quarterly earning, it will take almost 10 years just to earn that back. 🤣 🤣 🤣
https://www.reuters.com/business/autos-transportation/musk-says-both-tesla-shareholder-resolutions-passing-by-wide-margins-2024-06-13/

[-] TonyTonyChopper@mander.xyz 11 points 3 months ago

It should be highly illegal to pay anyone double a company's revenue let alone income

[-] greenshirtdenimjeans@sh.itjust.works 22 points 3 months ago

And shareholders approved that massive pay package lol

[-] sunzu@kbin.run 11 points 3 months ago

Delaware judge had a backbone... It doesn't happen often it was refreshing to see somebody taking a stand on this clown regime

[-] cosmicrookie@lemmy.world 14 points 3 months ago

But Elon is surely worth the highest salary ever given huh?

[-] 14th_cylon@lemm.ee 14 points 3 months ago

the company said it earned $1.48 billion in net income on $25.5 billion in revenue

definitely worth $47 billion bonus :D

[-] Buffalox@lemmy.world 5 points 3 months ago* (last edited 3 months ago)

47 Billion was the old one, that was declared illegal by court of law.
The new one passed by stockholders is 56 Billion.

https://www.reuters.com/business/autos-transportation/musk-says-both-tesla-shareholder-resolutions-passing-by-wide-margins-2024-06-13/

At the rate of this result, it will take almost 10 years of Tesla profits, just to pay Musk his bonus!!

[-] MyOpinion@lemm.ee 12 points 3 months ago

Elon is tanking this company.

[-] Imgonnatrythis@sh.itjust.works 13 points 3 months ago

I imagine it becomes a bit hard to care when you have both a literal and figurative line of people out the door waiting to suck your dick every day. While I admittedly appreciate the Jumpstart Tesla gave EV development, it's. Now time for it to die.

[-] mosiacmango@lemm.ee 4 points 3 months ago

Status is all that people like Elon have left. When you can have anyhting, that's the only thing left for you to try to gain.

He 100% cares at being seen as incompetent. He won't ever go hungry again, but he will get up in his feels about this shit.

[-] Imgonnatrythis@sh.itjust.works 2 points 3 months ago

Pretty sure he never went hungry in the first place. If he cares about being seen as incompetent he sure doesn't seem to be showing it.

[-] empireOfLove2@lemmy.dbzer0.com 11 points 3 months ago

Womp womp

[-] Nougat@fedia.io 11 points 3 months ago

Are they still in the black? Yes? Then they have been ripping everyone off.

[-] thorbot@lemmy.world 7 points 3 months ago

Haha get fucked muskrat

[-] Vaggumon@lemm.ee 6 points 3 months ago* (last edited 3 months ago)

Oh no .. oh wait, I don't give a fuck.

[-] JohnDClay@sh.itjust.works 5 points 3 months ago

Prices on EVs were crazy high following COVID, I'm glad they're finally coming down.

[-] reddig33@lemmy.world 8 points 3 months ago

Prices on all cars were crazy high, not just EVs.

[-] stringere@sh.itjust.works 2 points 3 months ago

Prices on all cars were crazy high, not just EVs.

Were? They suddenly became sensibly priced? Guess I wasn't paying attention.

[-] ImpressiveEssay@lemmy.world -2 points 3 months ago

Lol...

People didn't like when Trump tried to interfere with the government. This is the consequences of Elons allegiance to trump & maga

this post was submitted on 24 Jul 2024

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