Tesla Misses Profit Estimates as Elon Musk Delays ‘Robotaxi’ Launch

• Tesla's profits dropped by 45% in Q2 due to slower sales, high lay-off costs, and heavy AI investments. The net income was $1.47bn, missing the $1.9bn estimate, causing an 8% drop in after-hours trading.
• Elon Musk postponed the launch of Tesla's 'robotaxis' from August to October, claiming the project could boost Tesla's valuation to $5tn. Despite the delay, revenues rose 2% to $25.5bn, driven by energy storage growth and regulatory credits.
• Operating expenses surged 39% to nearly $3bn, partly due to a 10% workforce cut. Tesla is also expanding its Texas gigafactory for AI infrastructure, housing 50,000 supercomputer H100 chips.
• Tesla's gross margin fell to 18%, down from 29.1% in Q1 2022. Without regulatory credits, the automotive gross margin would have been 14.6%. Musk is prioritizing autonomous taxis over the affordable Model 2 EV.
• Musk is also focusing on the Optimus humanoid robot, with limited production expected next year and consumer availability by 2026. Despite a 4.7% drop in EV deliveries from last year, Tesla remains the largest EV company.

Source: FT