Tesla reported second-quarter earnings on Wednesday that came in line with Wall Street expectations on both revenue and earnings per share, as vehicle deliveries fell and pricing pressures persisted.
The company posted adjusted earnings per share of 40 cents and revenue of $22.50 billion.
It missed consensus estimates compiled by LSEG and Visible Alpha, which had forecast EPS of 43 cents. Revenue was expected to decline 11% year over year to $22.74 billion, with an auto gross margin of 13.6%.
Tesla’s operating margin fell to 4.1% in the second quarter, down from 6.3% in the same period last year while net income declined 16% year over year to $1.2 billion.
The second most voted question at the Say Technologies platform asks the company for “an update on the development and production timeline for Tesla‘s more affordable models.”
The company said on its earnings shareholder deck that volume production is planned for later this year.
“We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025,” the company said on the shareholder deck.
Last week, Barclays analyst Dan Levy said he believes that the EV maker may “delay the launch of the low-cost model to the fourth quarter, which could be perceived negatively.”
“Additionally, we continued development of Semi and Cybercab, both slated for volume production in 2026,” Tesla added on the shareholder deck.
Tesla shares closed 0.3% higher at $332.56 on Wednesday and rose 1.2% in after-hours trading following the results.
The electric vehicle maker delivered 384,122 vehicles globally in the three months ended June 30, down from 443,956 in the same period a year earlier.
Of the total, 373,728 units were Model 3 and Model Y vehicles, while 10,394 were higher-end models including the Model S, Model X, and Cybertruck.
Registrations in California fell 21.1% year over year in the second quarter to 41,138 vehicles, according to data from the California New Car Dealers Association.
