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As expected, last night’s Tesla earnings announcement brought more bad news for the challenged EV-maker with 13.5pc less vehicles delivered in Q2.
Elon Musk’s Tesla woes continue as the electric vehicle (EV) maker again announced disappointing quarter two results, with its biggest decline in revenues in over a decade. And the future does not look bright with the loss in electric vehicle incentives on the way thanks to Donald Trump’s ‘Big Beautiful Bill’.
Revenues at Tesla fell 12pc in Q2 to $22.5bn. On an earnings call, the normally optimistic Musk warned of “rough quarters” ahead, when pressed on the loss of the EV incentives, and markets reacted with a drop of up to 5pc in the share value.
Most analysts believe the launch of a promised new affordable Tesla is the short-term fix, but there was little yesterday to reassure them. Having originally said the long-awaited affordable Tesla would start builds in the first half of the year, it said yesterday that “the first builds” started only in June. Musk mentioned on the call that the new model would be a version of the existing Y model.
“A lightly refreshed product offering, plus increasingly compelling alternatives from competitors in Asia, Europe and North America make it harder to sell Teslas than has been the case until quite recently,” said Forrester principal analyst, Paul Miller.
“The withdrawal of EV incentives in several countries makes the vehicles less attractive and the full impact of tariffs imposed by the US and other countries is not yet clear.”
On the earnings call, Musk continued to promote the idea of his robotaxis as the proverbial white horse that would bring Tesla back to success, but the Austin robotaxi pilot got off to a shaky start and many question Musk’s optimism when it comes to reaching his huge ambitions.
“During the investor call, Elon Musk talked about ‘getting the regulatory approvals’ to expand the Austin pilot even further, and to launch in the Bay Area, Arizona, Nevada and Florida soon,” said Miller. “He went so far as to suggest the company ‘could’ address half the US population by the end of 2025, ‘subject to regulatory approvals’.
“That caveat is an important one, as regulatory approvals take time and there is no evidence that these formal applications to the separate state regulatory processes have begun.”
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Porsche AG on Friday dialled[sic] back plans for its electric vehicle rollout due to weaker demand, pressure in key market China and higher U.S. tariffs, causing the luxury sportscar maker and its parent Volkswagen to slash their 2025 profit outlooks:
The move highlights the challenges for one of the most well-known car brands, which has been squeezed by its two most important markets - China and the United States - over price declines and trade barriers.
Volkswagen, Europe's top carmaker, said it would take a 5.1 billion euro ($6 billion) hit from the far-reaching product overhaul, which delays some EV models in favour of hybrids and combustion engine cars, at its 75.4%-owned subsidiary.
The changes are a major shift for the Stuttgart-based maker of the iconic 911 model, and are expected to hit Porsche's operating profit by up to 1.8 billion euros this year, it said.
[...] Porsche said it would delay the launch of certain all-electric vehicles, adding that the new SUV above the Cayenne model would initially not be offered as an all-electric vehicle, but with combustion-engine and hybrid models.
Also at ZeroHedge.
Previously: Porsche's New Cayenne Will Charge Itself Like No Other EV
Related:
- Canadian EV Sales Collapse by 35% as Gas Car Purchases Surge
- Tesla Continues Slide As Musk Warns Of "Rough Quarters" Ahead
- Electric Truck-Maker Nikola Falls Into Bankruptcy Joining a Procession of Failed EV Startups
General Motors said on Oct. 14 that it will bear a $1.6 billion loss to scale back its electric vehicle (EV) operations, citing weaker expected demand following recent U.S. policy changes that ended federal EV tax credits and loosened emissions rules:
The Detroit-based automaker said its Audit Committee approved the loss on Oct. 7, covering the three months ended Sept. 30. The company noted that the loss is part of its plan to realign EV production and factory operations to better match customer demand.
The decision was made after the expiration of the $7,500 federal EV tax credit on Sept. 30, part of a broader policy rollback under President Donald Trump.
[...] "Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow," GM said in a filing.
[...] According to the filing, $1.2 billion of the loss is related to non-cash impairments, mostly write-downs of EV assets. The remaining $400 million will be paid in cash for contract cancellations and commercial settlements tied to EV investments.
The company said its review of EV manufacturing and battery component investments is ongoing.
Related:
- Canadian EV Sales Collapse by 35% as Gas Car Purchases Surge
- Tesla Continues Slide As Musk Warns Of "Rough Quarters" Ahead
- Electric Truck-Maker Nikola Falls Into Bankruptcy Joining a Procession of Failed EV Startups
See Also:
- EV Sales In Europe Keep Surging, With One Exception
- EVs Poised To Exceed Half Of Europe's New Car Sales Sooner Than Expected
- EV sales are surging in Europe, except for Tesla
(Score: 4, Funny) by Snospar on Saturday July 26, @11:15PM (7 children)
We should be encouraging people to drive electric. Fuck the green credentials, a Tesla 3 is a an absolute scream to drive. Sure, they're watching your every move and the telemetry is all sent back to China & USA but who cares? 0-60 in 4.2 seconds - I am living in the future! One foot driving is like Mario kart, I get cross now when I need to use the brake. Also the 0-60 isn't the really important thing, the 40-70 is just as fast which makes overtaking faster and safer. Weirdly you get some drivers that don't like being overtaken by an electric and they (dangerously) accelerate when you try to pass. They lose every time because I just push Button A harder. Mwah hah hah ha
Huge thanks to all the Soylent volunteers without whom this community (and this post) would not be possible.
(Score: 5, Insightful) by JoeMerchant on Saturday July 26, @11:26PM
>40-70 is just as fast which makes overtaking faster and safer.
This is why I drive V8s, or at least healthy V6s.
>We should be encouraging people to drive electric.
Overall, I believe we should be encouraging people to drive less. To not give up on Work From Home, encourage better management/engagement before just declaring that Return To Office is the only way to "fix things."
BP just gave up on their de-petroleumification initiative, they're returning to the model that made the most money for the last 100 years - that model that's going to make the coastal cities uninhabitable within 100 more years, but BP shareholders will be able to afford the move to higher ground.
🌻🌻🌻 [google.com]
(Score: 3, Interesting) by JoeMerchant on Saturday July 26, @11:31PM (3 children)
>Weirdly you get some drivers that don't like being overtaken by an electric and they (dangerously) accelerate when you try to pass. They lose every time because I just push Button A harder.
In the late 90s I turbocharged my Miata - doubled the horsepower with less than 1% weight gain.
On Miami Beach there was an old lady who drove a 450SL convertible, apparently her lane change method consisted of putting the accelerator to the floor and then just moving over without looking, but my Miata was more than keeping up with her heftier V8 Merc, when she started to move on me I gave her the air horns, she swerved back (so I didn't have to brake) and trounced the pedal ALL the way to the floor, then started to move again. She looked three times as flustered when she heard the air horns a second time and decided to let me pass since we were getting up over 65mph on a twisty 40mph four lane... there was no reason for her to need my lane for at least a mile further down the road.
🌻🌻🌻 [google.com]
(Score: 3, Touché) by Anonymous Coward on Sunday July 27, @02:00AM (1 child)
The junkyard/graveyard are full of folks with the Right Of Way.
(Score: 1, Touché) by Anonymous Coward on Sunday July 27, @02:52AM
(Score: 2) by sgleysti on Sunday July 27, @04:14AM
Reminds me of the poem the freeway life by Charles Bukowski, reproduced below. The track he's talking about is the horse racing track.
some fool kept blocking me and I finally got around him, and
in the
elation of freedom I ran it up to 85 (naturally, first checking
the rear
view for our blue suited protectors); then I felt and heard the
SMASH of a hard
object upon the bottom of my car, but wanting to make the
track I willed
myself to ignore it (as if that would make it vanish) even
though I began
to smell gasoline.
I checked the gas gauge and it seemed to be holding . . .
it had been a terrible week already
but, you know, defeat can strengthen just as victory can
weaken, and if
you have the proper luck and the holy endurance the gods just
might deliver
the proper admixture . . .
then
traffic backed up and stopped, and then I really smelled gas and
I saw my
gas gauge dipping rapidly, then my radio told me that a man
3 miles up
on the Vernon overpass had one leg over the side and was
threatening
suicide,
and there I was threatened with being blown to hell
as people yelled at me that my tank was broken and pouring
gasoline;
yes, I nodded back, I know, I know . . .
meanwhile, waving cars off and working my way over to the
outer lane
thinking, they are more terrorized than I am:
if I go, those nearby might go also.
there was no motion in the traffic—the suicide was still trying
to make
up his mind and my gas gauge dipped into the red
and then the necessity of being a proper citizen and waiting for
opportunity
vanished and I made my move
up and over a cement abutment
bending my right front wheel
I made it to the freeway exit which was totally
clear
then worked on down to a gas station on Imperial Highway
parked it
still dripping gas, got out, made it to the phone, got in a call
for the tow truck, not a long wait at all, nice drive back in
with a black
fellow who told me strange stories about stranded
motorists . . .
(like one woman, her hands were frozen to the wheel, took 15
minutes of
talking and prying to make her let go.)
had the car back in a couple of days, was driving back from the
track,
hit the brake and it wouldn’t go down, luckily I wasn’t on the
freeway
yet, cut the ignition, glided to the curb, noted that the steering
column cover had ripped loose and blocked the brake, ripped
that away, then
ripped some more to make sure, then a whole mass of wires
spilled out,
s h i t . . .
I turned the key, hit the gas but the car STARTED
and I drove off with the dangling wires against my leg
thinking
do these things happen to other
people or am
I just the chosen one?
I decided it was the latter and got onto the freeway where
some guy in a volks swung over and blocked my
lane
whereupon I swung around the son-of-a-bitch and hit
75, 80, 85 . . .
thinking, the courage it took to get out of bed each
morning
to face the same things
over and over
was
enormous.
(Score: 4, Touché) by YeaWhatevs on Saturday July 26, @11:31PM
Why be offended by an aggressive driver? Yes it must surely be the electric, this is perfectly acceptable otherwise.
(Score: 0) by Anonymous Coward on Sunday July 27, @12:35AM
More and more I'm aware of people making more and more assumptions. Everyone is a mind-reader these days. How are you so sure of those other drivers' thoughts?
I'd literally bet the other drivers are just testing their own cars, and curious how much quicker your Tesla is. I'm sure you've heard of drag racing? It's a thing. Not just limited to TV or race tracks or hoodlums.
(Score: 5, Interesting) by ElizabethGreene on Sunday July 27, @12:08AM (12 children)
Acknowledging the very real risk that I've become a fangirl, this is a buying opportunity.
It's difficult for me to imagine buying a car from any other brand now.
They didn't take my keys when I took a test drive.
They didn't try to sell me floormats, undercoat, or a protection package.
It took 32 minutes to buy the car. If I hadn't rescheduled my appointment sooner, it would have been 15. (They had to go print my paperwork package.)
When I'm not pulling a trailer, full self-driving is a better driver than I am.
When I am pulling a trailer, the adaptive cruise control works better than any other car I've driven.
My headlights automatically notch out so I don't blind other drivers with high-beams on our country backroads.
I get in the car every morning with the battery at 80%, equivalent to 3/4s of a tank in our Mazda.
In 5,831 miles, I've spent $268.32 on charging. In our Mazda, that same number of miles would take, optimistically, 290 gallons of gas. I grossly _under_estimated the amount we'd save on gas.
Ignoring Tesla as an Energy company (grid scale battery banks), ignoring Tesla as a robotics company, ignoring Tesla as a solar company, Ignoring Tesla as the largest Level 3 charging provider in the US (and consistently cheaper than e.g. Chargepoint), ignoring Tesla as a rideshare provider, they make really good cars.
I'm still pissed at Elon over the private @ 420 thing; I lost money on that. Elon's politics are also a minefield. Despite that, I still think it's probably a good investment.
(Score: 5, Touché) by mhajicek on Sunday July 27, @12:41AM (3 children)
And when the type of person you are is declared illegal by executive order, your car can lock you in and automatically drive you to the appropriate law enforcement agency.
The spacelike surfaces of time foliations can have a cusp at the surface of discontinuity. - P. Hajicek
(Score: 3, Insightful) by ElizabethGreene on Sunday July 27, @02:34PM (2 children)
This is a concern, so I took the five minutes to learn where the manual door releases are. In a model Y, the front releases are built into the armrest, easily accessible but subtly hidden as a latch on the front of the armrest. In the rear doors, there is a cable actuated manual release in the door pocket underneath the rubber mat. This one is a bit fidgety to get to, so I attached a pull strap to it on each side.
I would like to have a kill switch that disengages the main contactor too, but that would require substantial modification. The emergency response manual shows the location of the emergency cut-to-kill cable for rescue operators, but it's not realistic it is for me to get into the back seat, do that, and get back in the front seat to apply the brakes. I am currently accepting this risk.
How would you turn off your car if it decided to go rogue? The chassis control module controls the ignition, transmission, and throttle position independent of your inputs on most modern vehicles.
It's not paranoia if they really are out to get you.
(Score: 4, Insightful) by aafcac on Sunday July 27, @05:45PM
That is just absolute madness. Such important latches should never be hidden, especially on vehicles like the cybertruck where you can't break the windows to get out.
People shouldn't have to read the manual so they don't burn to death in a fire while riding in somebody else's car.
(Score: 2) by crm114 on Sunday July 27, @07:26PM
You rock.
(Score: 4, Insightful) by sgleysti on Sunday July 27, @04:19AM (4 children)
TSLA's price to earnings ratio makes no sense, and I think the stock price is based in large part on hype. Personally, I would stay away.
That said, I also wouldn't buy stock in a single company. I stick to low expense ratio broad market index funds.
(Score: 2) by ElizabethGreene on Sunday July 27, @02:37PM (3 children)
I generally agree on the P/E.
Then I look at the global energy market snuggling up to 2 trillion dollars annually, mumble something about space based solar power, and put in a buy order.
(Score: 2) by sgleysti on Sunday July 27, @04:24PM (2 children)
Buying the stock of an individual company incurs a lot of risk, especially one with as much volatility as Tesla. In their case, the volatility is both in the price and the CEO, lol. And again, the P/E doesn't make sense...
I'm only 37, but AARP has a great article on why to buy low cost index funds instead of individual stocks: https://www.aarp.org/money/personal-finance/reasons-not-to-buy-individual-stocks/ [aarp.org]. It is a good distillation of some of the best financial advice I've ever received personally, and I'm pretty sure AARP isn't selling anything with that article.
Individual stocks can go to zero or have persistent poor performance, but these things are less likely for the market as a whole, and low cost index funds return the performance of the whole market.
(Score: 2) by ElizabethGreene on Monday July 28, @03:40PM (1 child)
I understand the value of index funds, and that's where the majority of my retirement savings are. For my "play" money, I have a higher risk tolerance. It was the pandemic that got me to start aggressively investing that. The S&P plummet and everyone was scared. Remembering 2008, I understood the market was overreacting. There were insane deals to be had then; I got deep in the money Microsoft LEAPs calls with more than a year of time value for under $3. They paid off my house. It was an amazing time.
I'm still in fwiw; Last week I took a straddle on Lockheed Martin going into their earnings that worked out ok. I don't know if I'll ever see steals like we had in the pandemic again though, and I'm ok with that. The pandemic sucked.
(Score: 2) by sgleysti on Monday July 28, @11:32PM
Oh man. I don't have the guts to use LEAPs. I considered gearing up to buy micro e-mini futures if the stock market dipped but ultimately decided against it. I did keep buying (401k contributions at a pretty high rate) during the recent downturn in April, and that worked out well.
(Score: 2) by Tork on Sunday July 27, @11:28PM (2 children)
In light of the political climate I'm gonna be up front and tell you I mean that at face value. A few years before Covid I moved to walking-distance at work. I rarely drive and yeah I won't be test-driving any EVs soon. I've only been in a Tesla once (I liked the hud showing me speed limit signs...) and don't know a thing about any other EV brand. I am a hardware nerd (VECTREX!!) and I've been enjoying watching the evolution of these vehicles as their technical realities sink in. I mean, are we that far away from self-valet'ing cars? Anyway, sorry for the rambling... I was just curious if the various brands have their own thing or if it's more like how smartphones really aren't that distinct anymore?
🏳️🌈 Proud Ally 🏳️🌈 - Give us ribbiti or make us croak! 🐸
(Score: 2) by ElizabethGreene on Monday July 28, @03:27PM (1 child)
I've ridden in a couple of other EVs, so I have some comparisons. I'm a big person, and the seats on the Hyundai Ioniq are a little more comfortable, and this is a nit-pick, I also like having a dedicated control for the windshield wipers. That said, I can't go back to a non-self-driving car. Neither the Ioniq or the Ford can drive themselves, parallel park, or automatically back into parking spaces. There are lots of "just works" experience things too. e.g. For charging, you have to find a CCS capable charger, take out your phone, NFC at the charger, and connect the cable. With the Tesla, the car authenticates to superchargers, bills you directly, and just works. Even the in-car app for finding charger "feels" less friction.
The self-valet thing partially exists today. It's called "Automatic Smart Summon". When I come out of the Costco and it's raining cats and dogs, I pull out the app, press and hold down the "come to me" button, and the car automatically drives to me. The best part of ASS is the reactions of others when they see an empty car driving itself. :D I love overhearing someone seeing that for the first time. Kids in particular love it. :D The second half, where the car drops you off and goes to do whatever, is supposed to be called "Banish". It has been discussed repeatedly, but no timeline on delivery yet. I expect it will come after unsupervised Full Self Driving rolls out.
(Score: 1) by Tork on Monday July 28, @03:33PM
🏳️🌈 Proud Ally 🏳️🌈 - Give us ribbiti or make us croak! 🐸
(Score: 1, Interesting) by Anonymous Coward on Sunday July 27, @09:21AM (4 children)
(Score: 2) by ElizabethGreene on Sunday July 27, @02:48PM (3 children)
I'm reasonably confident the market cap is because of Musk's history of doing impossible things significantly behind schedule. Take him out, and it plummets.
I can justify about half of it as being equal to Toyota (Car business) + Waymo/Uber/Lyft (Taxi service). I don't know about grid scale energy storage providers to compare them to, so that's a gap, and the robotics business is a completely speculative business. My gut is that those don't add up to another half a trillion dollars, so it has a significant bet on future innovation.
(Score: 3, Funny) by ledow on Monday July 28, @07:25AM (2 children)
Impossible things like buy an existing car company, launch a rocket in a ridiculously wasteful way, make a tunnel and try to make a train?
Yeah, the man's a genius...
(Score: 2) by ElizabethGreene on Monday July 28, @03:51PM (1 child)
I'm old enough to remember the yellow haze of smog driving into Nashville, the choking stench of gas fumes when you drove on the highway, and acid rain literally digesting landmarks. Back then, self-driving cars, Turing-demolishing AIs, and reusable rockets were impossible. Now my car can drive me to watch clear sky Falcon launches at Canaveral while I talk to my choice of a half-dozen different AIs on a phone that has internet access beamed down from space.
It's ok to set aside the cynicism for a minute and admit that some parts of the future are pretty cool. We have enough doom and gloom; There's no shame in taking a win occasionally.
(Score: 2) by ledow on Tuesday July 29, @10:26AM
They weren't impossible, they were largely impractical, unnecssary, actually achieved by others, and AI has very little attributable to Musk, Tesla or any of his other entities whatsoever, they just used existing tech.
Musk is a bank-rolling billionaire but he's not making any of this happen except by throwing money and barking orders, then taking all credit.
He is, ironically, the Edison of the current day.