New york: Tesla shares tumbled more than eight percent early Thursday after it reported lower profits and CEO Elon Musk warned the company faced more potentially "rough" quarters ahead. Near 1415 GMT, Tesla shares were at $304.15, down 8.4 percent.
According to Bangladesh Sangbad Sangstha, Tesla reported second-quarter profits of $1.2 billion, down 16 percent from the year-ago level, marking its third consecutive quarter of declining profits. Musk, on an earnings conference call, suggested the company's recent slump would continue or worsen in a difficult interim period until new autonomous transport ventures can be monetized.
The company anticipates lower sales following the expiration of a $7,500 federal tax credit for electric vehicle purchases on September 30. This change comes under legislation signed into law by President Donald Trump. Musk acknowledged the possibility of "a few rough quarters" but maintained that Tesla's business proposition will become "very compelling" once its autonomy operations are scaled up.
Musk's relationship with Trump has been complex, highlighted by Musk's donation of more than $270 million to Trump's successful 2024 presidential campaign. Despite this support, Trump's fiscal policies have been a point of contention between the two. Trump, who has previously hinted at deporting Musk after earlier disagreements, appeared to extend an olive branch on Thursday. He assured on social media that he will not "destroy" Musk's business by removing subsidies, expressing a desire for both Musk and businesses in the country to "THRIVE."