Executives were confident last quarter that sales would turn around, as they attributed the dip to a unique confluence of factors, including a global slowdown in EV sales and production disruptions.
Shares of Tesla dipped about 3 percent in after-hours trading.
In April, Tesla reported a steeper-than-expected 55 percent plunge in profit for the first quarter. CEO Elon Musk said at the time that the outlook for the second quarter would be “a lot better,” adding: “I think we will have higher sales this year than last year.”
Also at the time, Musk had emphasized the company’s plans to unveil a “cybercab” — a fully autonomous robotaxi — in August. Plans for that launch, however, have been delayed until October.
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“Moving back a few months allowed us to improve the robotaxi as well as add in a couple of other things for the product unveil,” Musk said on an earnings call Tuesday.
Tesla said in a statement that it remains focused on cost reduction and investing in AI-enabled products.
The company said plans for more affordable models “remain on track” for start of production in the first half of 2025.
“These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up,” it said.
“Perhaps more than ever in the company’s recent history, Tesla’s investors need results,” said Thomas Monteiro, senior analyst at Investing.com. “Those will have to come fast — both for the humanoid robot and for the robotaxi.”
