Shares of the electric car manufacturer “Tesla” fell by more than 4%. “Bloomberg” reports that investors are concerned about the manufacturer’s ability to make a profit in the next half year.
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“Tesla” stock price fell after the company published information about the second quarter of this year. The data show that the profitability of the company has decreased. The automaker also warned that the decline in profits would continue.
The company’s CEO, billionaire Elon Musk, said the company is likely to continue to lower the prices of its electric cars if interest rates continue to rise.
“Bloomberg” analysts indicate that the strategy has worked and the company’s financial position is good. Also, the company has been able to increase production volumes.
Tesla reported adjusted earnings of $3.1 billion, or 91 cents per share, to investors, up 20% from last year’s second quarter. Analysts polled by Refinitiv had forecast earnings of 82 cents per share.
The carmaker’s revenue grew by 47%. But that was far less than the 83% increase in vehicles sold, suggesting that Tesla is continuing to increase demand for its cars by lowering prices.
Tesla is also investing in new products, including the latest Cybertruck model and the Dojo supercomputer, which Musk said will invest at least another billion dollars.
While Tesla still plans to produce around 1.8 million vehicles in 2023, production will decline during this quarter due to factory upgrades.
It should be mentioned that the value of “Tesla” shares has increased by almost 170% this year, so a 4% drop does not cause significant problems for long-term investors.
2023-07-20 07:01:17
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