AutoBeta(AutoBeta.net)07/24 Report--

On July 24, Tesla released his financial results for the second quarter of 2024. Data show that Tesla's revenue in the second quarter of 2024 was $25.5 billion, up 2.30% from the same period last year; Tesla's net profit was not optimistic, at $1.478 billion, down 45.32% from the same period last year; gross profit was $4.578 billion, with a gross profit margin of 18%.

Revenue from the auto business, a pillar product of Tesla, was $19.878 billion in the second quarter, down 7 per cent from a year earlier. In terms of new car production and sales, in the second quarter of this year, Tesla produced a total of 410800 vehicles worldwide, down 14% from the same period last year and reaching a five-quarter low, of which the cumulative production of Model 3 and Model Y was 386600, down 16% from the same period last year. Tesla delivered a total of 444000 new cars in the second quarter, down 5% from the same period last year. This is the first time that Tesla's sales have declined for two consecutive quarters compared with the same period last year, but it has increased from the first quarter, up 14% from the previous quarter.

As for the financial performance, Tesla said that the increase in revenue in the second quarter was due to the increase in energy production and storage business and the decrease in the average selling price of its models; as for the decline in net profit, Tesla said that profits were mainly affected by "increased operating expenses driven by artificial intelligence projects" and "restructuring expenses". It is understood that in April this year, Tesla announced that he would lay off 10% of his staff worldwide. Affected by the layoffs, Tesla reported a restructuring fee of US $622 million.

Or due to the fact that the results fell short of market expectations, Tex Latin American shares fell 7% in after-hours trading. As of July 23, US Eastern time, Tesla shares closed at $246.380, down 2.04%, with a total market capitalization of $785.8 billion.

In the past 2023 years, Tesla has sold 1.8086 million vehicles worldwide, which has set a brilliant record, but it is undeniable that Tesla's life has not been easy after entering 2024, especially in the Chinese market. In April, Tesla CEO Elon Musk issued a full letter announcing that Tesla would lay off 10 per cent of its staff worldwide. At that time, industry insiders pointed out that Tesla layoffs may be related to the decline in Tesla delivery volume in the first quarter. Tesla delivered 386800 new cars, down 8.5 per cent from a year earlier, according to the data, falling below 400000 for the first time since the third quarter of 2022 and well below the expectations of the most pessimistic analysts.

Up to now, Tesla's global models on sale include Model 3, Model Y, Model S and Model X. because of their high prices and imported models, the latter two do not have a high sense of presence in China. Model Y is Tesla's first domestic SUV model, and it is also Tesla's important source of sales in the Chinese market. Taking the retail sales data for the first half of 2024 as an example, Tesla's cumulative sales in China were 278317, of which 207817 were Model Y, accounting for 74.67% of the total sales. Sidney model 3 was 70500.

It should be noted that with the rise of domestic electric cars and the increase of products of the same class, Tesla's sales in China began to decline. According to data from the Federation of passengers, Tesla's sales in China in June were 71000, down 24% from the same period last year and 2.2% from the previous month, while sales by car companies including BYD, ideal Motors, Ulay Motors and Zero cars all showed a year-on-year growth trend over the same period.

Or to boost sales, Tesla's Chinese website showed on July 23 that the deadline for the five-year zero interest event for some Model 3 and Model Y models had been extended from July 31 to August 31, but the event only covered rear-wheel drive and long-range all-wheel drive versions, excluding high-performance versions. On the contrary, Tesla raised the price of Model S and ModelX in the US market by $2000.

At the earnings call, Musk said he would apply for regulatory approval in China and Europe to implement the supervised FSD (fully autopilot system), which is expected to be approved by the end of the year. FSD, an autopilot system developed by Tesla, is seen as the key to Tesla's sales growth in the Chinese market. In addition, Musk said he would start producing a low-cost model in the first half of 2025, but did not disclose details about the new car because he was worried that the news of the new car would affect sales of cash models.

In short, Tesla still relies on Model 3 and Model Y for its sales in the second half of this year, but due to the slow upgrading of Tesla's models, its product competitiveness is obviously lower than it used to be, and its first electric pickup truck, Cybertruck, is still climbing. For Tesla, there is an urgent need to launch a volume model to stimulate sales growth, but Tesla is also under pressure against the backdrop that low-cost electric models will not be launched until 2025. However, as early as the beginning of the year, Tesla issued a red signal that the growth rate of new car delivery this year may be significantly lower than that of 2023. Tesla pointed out that the main reason is that the Tesla superfactory is preparing for the launch of the next generation of new cars. Judging from the sales volume in the first half of the year and the latest financial performance, "how to get through the second half of the year without a sharp decline in profits" is still the biggest test Tesla is currently facing.

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