(News Bulletin 247) – Gross margin at the group’s automotive division fell to a more than five-year low in the second quarter and its earnings per share fell by more than 40%. The stock fell sharply in post-market trading in New York.

After a very bad start to the year on Wall Street, Tesla was starting to take its revenge on the stock market. The automobile group specializing in electric vehicles had notably chained ten consecutive sessions of increases from June 25 to July 10, which had allowed its share price to return to the green for the whole of 2024.

The mini-rally was fueled by better-than-expected deliveries in the second quarter. It ended when Bloomberg reported that Tesla was considering postponing its “robotaxi day,” a much-anticipated day for investors to see the company’s progress in artificial intelligence and autonomous driving.

Tesla’s quarterly results released Tuesday night are expected to accelerate the group’s stock market decline. In post-market trading, the carmaker’s stock plunged 7.8% on Wall Street.

“Tesla’s performance is like a car that won’t start: profits are down and the company has postponed its long-awaited robotaxi event until October,” sums up Stephen Innes of Spi asset management.

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Earnings per share below expectations

Elon Musk, Tesla’s CEO, told analysts that this “robotaxi day” had been postponed to October 10, whereas it was previously scheduled to take place on August 8.

As for the results themselves, they were disappointing for the fourth time in a row.

In the second quarter, Tesla generated revenue of $25.5 billion, a figure certainly higher than the LSEG consensus cited by CNBC, of ​​$24.8 billion. But this good performance is mainly explained by record revenue of $890 million from carbon emission credits. By marketing cars that emit little CO2, Tesla can sell these credits to other manufacturers who are struggling to comply with the regulatory limits on emissions imposed by certain American states.

Tesla’s core business continues to struggle. Automotive revenue fell 7% in the period to $19.9 billion. Automotive gross margin, a market-tracked indicator, fell to a five-year low of 14.6%, according to Reuters, from 16.4% in the previous quarter. Musk told analysts that Tesla’s new electric vehicle competitors had offered significant discounts, putting pressure on the company, according to Reuters.

Tesla’s operating margin fell to 6.3% from 9.6% a year earlier. Earnings per share plunged 43% to 52 cents, significantly missing the LSEG consensus of 62 cents per share.

Regarding its outlook, the automaker estimates that it will deliver more vehicles in the third quarter than in the second. Tesla also indicated that it is “on track” to begin production of new models in the first half of 2025.

Asked when his first robotaxi would be released, Elon Musk said, according to CNBC, that he would be “very shocked” if the company was not able to get there next year.