Tesla starts production of more affordable model, reports steepest drop in quarterly revenue in over a decade
The company reported the steepest decline in quarterly revenue in more than a decade, with a 12 per cent fall, as it battles strong competition from cheaper electric vehicles and a backlash against CEO Elon Musk's political views.
Revenue fell to $22.5 billion for the April-June quarter from $25.50 billion a year earlier. Analysts on average were expecting revenue of $22.74 billion, according to data compiled by LSEG.
The company reported a second straight quarterly revenue drop despite rolling out a much-awaited refreshed version of its best-selling Model Y SUV that investors had hoped would rekindle demand.
Much of the company's trillion dollar valuation hangs on its bet on its robotaxi service - a small trial of which was started in Austin, Texas, last month - and developing humanoid robots.
However, investors are worried about whether Musk will be able to give enough time and attention to Tesla after he locked horns with President Donald Trump by forming a new political party this month. He had promised weeks earlier that he would cut back on government work and focus on his companies.
A series of high-profile executive exits, including a longtime Elon Musk confidant who oversaw sales and manufacturing in North America and Europe and left Tesla last month, is also adding to the concerns.
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