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Arthur T Knackerbracket has processed the following story:
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.”
(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.