Latest news with #electriccars
Gizmodo
an hour ago
- Automotive
- Gizmodo
Tesla's Nightmare Continues As Musk Warns of 'Rough Quarters'Ahead
Tesla's second-quarter earnings paint a grim picture: falling profits, slumping sales, and a reputation hit that keeps on hurting. The all-electric carmaker reported net income of $1.17 billion, down 16.3% from the same period in 2024. Revenue fell 12% to $22.5 billion from $25.5 billion a year earlier, marking Tesla's second consecutive quarter of declining profits and revenue this year. The cause is clear: Tesla is selling fewer cars and cutting prices to chase demand. Deliveries fell 13.5% in the second quarter, showing how steep the drop has been. Tesla's troubles are about more than economics. CEO Elon Musk has become one of the most polarizing figures in the corporate world. His political pivot—spending nearly $290 million to help Donald Trump return to the White House in 2024 and later joining Trump's administration as head of the Department of Government Efficiency (DOGE)—sparked global backlash. The infamous DOGE began aggressively cutting federal agency budgets, sparking protests outside Tesla showrooms worldwide and, more importantly, alienating the company's core customer base. By becoming a prominent face of the administration and championing right-wing causes, Musk has pushed away the liberal buyers in the U.S. and Europe who once formed the bedrock of Tesla's support. Sales took a hit. Musk resigned from DOGE in May to refocus on Tesla, but the damage lingers. Adding to the drama, he recently launched a new political party, the American Party, vowing to field candidates in the 2026 midterm elections after falling out with Trump. 'We probably could have a few rough quarters. I'm not saying that we will, but we could,' Musk admitted on the earnings call with analysts. Tesla Isn't a Car Company Anymore The road ahead looks brutal. President Trump's 'One Big Beautiful Bill,' signed on July 4, kills the $7,500 federal EV tax credit as of September 30. That means Teslas are about to get pricier. The same law scraps clean-air penalties for automakers who fail emissions standards, ending a key Tesla revenue stream from selling regulatory credits to competitors. In Q2, those credit sales were slashed nearly in half, falling to $439 million from $890 million a year earlier. 'The One Big Beautiful Bill has a lot of changes that would affect our business in the near term,' CFO Vaibhav Taneja told analysts. Tesla, which manufactures most of its U.S. cars in Fremont, California, and Austin, Texas, still relies heavily on imported raw materials and components, leaving it vulnerable to tariffs. 'We started seeing the impact of tariffs,' Taneja said. 'Sequentially, the cost of tariffs increased around $300 million with approximately two-thirds of that impact in automotive and the rest in energy. However, given the latency in manufacturing and sales, the full impact will come through in the following quarters.' He warned: 'Costs will increase in the near term. While we are doing our best to manage these impacts, we are in an unpredictable environment on the tariff front.' Waymo Is Crushing Tesla in the Robotaxi Race The combination of slowing demand, price cuts, disappearing EV incentives, and rising tariffs suggests Tesla's earnings pain isn't going away soon. But on Wednesday's earnings call, Musk once again pitched his vision of Tesla's future, not as a car company, but as a robotics and AI powerhouse built on humanoid robots, automation, and self-driving tech. The problem? Tesla's late-June robotaxi launch in Austin showed how far behind it is. Waymo, Google's self-driving subsidiary, already operates fully autonomous robotaxis across multiple U.S. cities and covers more than twice Tesla's Austin service area. Tesla's small fleet, meanwhile, is invite-only and still requires a human supervisor in the passenger seat.
Yahoo
9 hours ago
- Automotive
- Yahoo
Tesla takes veiled swipe at Trump
Elon Musk's Tesla has taken a swipe at Donald Trump over US tariffs just months after the billionaire quit the White House. On Wednesday, the carmaker said Mr Trump's 'unclear' policies were hampering the global economic environment, It came after Tesla reported sharply lower profits as motorists shunned Tesla amid a political backlash over Mr Musk's links with the White House. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service In veiled swipe at Mr Trump, Tesla said it was investing in more development 'despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment'. The company said on Wednesday night that revenues for the second quarter were $22.5bn (£16.6bn), down 12pc on the year before. Profits slumped 16pc to $1.2bn. Sales of Model 3 and Y cars to dealerships fell 12pc from a year ago while the sale of other vehicles including the Tesla Cybertruck slumped 52pc. The company said its vehicle launch plans for 2025 remained on track and it would target 'more affordable models'. The company is facing increasing pressures from rival manufacturers challenging its grip on electric car sales. An overhauled version of the Model Y, its bestselling car, has also disappointed. Tesla revealed earlier this month that car sales had fallen by 13.5pc in the second quarter of the year. It means that sales are likely to fall for a second consecutive year, putting pressure on the company's status as the world's most valuable car maker. Mr Musk has increasingly bet the company's future not on traditional car sales, but on an experimental Robotaxi service in which self-driving Teslas ferry passengers around. It has started deploying the service in Texas but the launch has already grown scrutiny from regulators. Mr Musk has also claimed that Tesla's humanoid robot, Optimus, will ultimately be the company's biggest business. Mr Musk promised Tesla investors that he would return to full-time work at the company after leaving Doge, Mr Trump's government efficiency project, but has since pledged to start his own political party after falling out with the US President. Uncertainty over Mr Musk's commitment to Tesla has led to turmoil in its share price and pressure from investors to commit to the company. He tweeted this week that he was 'back to working 7 days a week and sleeping in the office'. The company also faces a potential blow from the Trump administration no longer offering tax credits for buying electric vehicles. Mr Musk has promised a cheaper new vehicle, as well as a dedicated driverless 'Cybercab' with no steering wheel or pedals. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
9 hours ago
- Automotive
- Yahoo
Tesla pledges to make cheaper cars as issues mount
Tesla has said it will build cheaper cars and win approval for its self-driving software in Europe this year, as it tries to revive its struggling business. Elon Musk's electric car firm told investors it had started "first builds of a more affordable model in June" while posting a slump in car deliveries and shrinking profits. The firm is struggling as it faces cuts to US government support for electric cars, competition from Chinese carmakers, and a brand hit from Musk's controversial political activities. Meanwhile, Tesla told investors US tariff policy had cost it $300m over the three months to June and warned of further pain in the months ahead. Chief financial officer Vaibhav Taneja said the end of a tax credit for buyers of electric cars in the US is also likely to hurt. Tesla did not provide an update on its outlook for the year, warning it was "difficult to measure the impacts of shifting global trade and fiscal policies". Revenue in the three months to June fell 12% year-on-year - the biggest drop in at least a decade - after deliveries plunged 14%. Profits fell 16%. Musk told investors on Wednesday he expected the firm's sales in Europe to increase once customers there are allowed to use the firm's self-driving software. He said he expected the first approval to come in the Netherlands but that the firm also hoped to win sign-off from the European Union, despite it having a "kalfka-esque" bureaucracy. "Autonomy is the story," Musk said. "Autonomy is what amplifies the value [of the company] to stratospheric levels." But the firm's once-fat margins have shrunk sharply, with profits down in five of the last six quarters. Shares have fallen roughly 30% from the peak last year, after Musk's support for Trump helped win the White House. Tesla shares tumble as Trump-Musk feud erupts US safety regulators contact Tesla over erratic robotaxis Car maker Stellantis says US tariffs have cost it €300m In May, as concerns about the company mounted, the head of the company's board had to publicly deny it had started looking for a replacement. Investors cheered after Musk said he was leaving the Trump administration, hoping he would focus on the company and steer clear of politics. But the messy break-up with the White House, as Musk has flirted with starting a new political party, has kept investors on edge. Earlier this month, Tesla investor and Trump supporter James Fishback wrote to the Tesla board, calling on it to determine if his political ambitions are "compatible" with his obligations as chief executive. Analyst Dan Ives, known as a fan of the company, also urged the board to impose guardrails, prompting Musk to snap back on social media: "Shut up, Dan". Musk's "shenanigans" have cost it some of the passionate support that had allowed it to grow without spending on advertising, said Daniel Binns, global chief executive of brand consultancy Elmwood. With Tesla now facing much stiffer competition, he said it was unlikely that the launch of a new model would fix the firm's problems by itself. "It will help... but it's got to be more than just another car," he said. "The market's caught up to them."
The Sun
18 hours ago
- Automotive
- The Sun
I'm a car expert – here's the BEST used electric cars you can buy for under £10,000 on Sun Motors
A CAR expert has revealed the best used electric cars that you can buy for under £10,000. Battery electric vehicles are often more expensive than petrol or diesel cars, but buying a used EV can help you save thousands of pounds. 6 These are the electric cars that won't break the bank, and are all available on Sun Motors. What is Sun Motors? Sun Motors is a pioneering platform transforming how people purchase used cars across the UK, crafted with customer ease and safety at the core. The marketplace links reputable and trusted dealerships to deliver a smooth and hassle-free car-buying journey from beginning to end. Featuring cutting-edge tools and services such as an AI chat bot on hand to answer any queries about specific cars, the platform simplifies the process of discovering and buying your perfect car. Start your search for your next used vehicle here. Renault Zoe (2012-present) 6 Model: Renault Zoe Parkers say: "The Renault Zoe has long been a popular choice for those wanting an affordable and capable small electric car." "The Zoe is also practical, pleasant to drive, and sensibly equipped." According to Renault, the model has a battery range of 239 miles, which should be fine most people's everyday needs. Kia Soul EV (2014-2019) 6 Model: Kia Soul EV Parkers commented: "The distinctive Kia Soul is often overlooked in the used electric car marketplace. "It's a good buy if you can find one, though, offering a range of up to 132 miles." And it comes with plenty of kit, including climate control, heated seats, cruise control, solar glass, a heat pump, and an eight-inch touchscreen infotainment system. Volkswagen e-Golf (2014-2020) 6 Model: Volkswagen e-Golf The car experts claim that a Volkswagen Golf is always a pretty good shout when it comes to car recommendations, and similarly so if you're looking at used electric cars. They say: "The VW e-Golf is just like the conventional Golf, but it's electric – so as well as being smooth and quiet, it's also familiar, straightforward, and easy to live with." The battery of the Volkswagen e-Golf has a total capacity of 35.8 kWh - and a range of about 115 miles is achievable on a fully charged battery. Nissan Leaf (2011-2018) 6 Nissan is already on its second generation of bespoke electric cars when many other carmakers have only just launched their first, so you should be able to find one for less than £10k. The battery of the Nissan Leaf has a total capacity of 40 kWh, and an estimated range of about 145 miles is achievable on a fully charged battery. BMW i3 6 Model: BMW i3 When it was launched in 2013, the BMW i3 was an innovative breath of fresh air in the electric car industry. The experts say: "The inside is a particular delight, but performance is great too, especially from the 2017-onwards i3S model. "Range varies, with the earliest cars managing only 120 miles per charge on their best day. But it still looks ultra-modern now, and as long as it's been treated well, the electric version should prove reliable." BMW claims a range depending on options and equipment, of between 177 and 193 miles for both i3 versions. This comes after a car expert revealed how to repair a touchscreen covered in scratches for free using products you have at home. Plus, a legendary Ford Sierra RS Cosworth with super low mileage is set to fetch an eye-watering price at auction. Buying a used car? Check out Sun Motors and find your next vehicle today. Whether you're looking for automatic, manual or electric, use Sun Motors to decide on your next model.
Yahoo
a day ago
- Automotive
- Yahoo
6 Electric Vehicles To Avoid Buying This Year
As the internal combustion engine goes the way of the dodo, it's becoming clearer that electric cars are the future; there's no denying it. But are all electric cars made equal? As the electric SUV and sedan market continues to evolve, it seems some models are falling behind the curve. Read Next: Learn More: GOBankingRates spoke to automotive experts to learn more about the EVs you should steer clear of this year. 2025 Nissan Leaf MSRP: $29,280 to $37,330 Once a pioneer in the EV world, the Nissan Leaf's older electric motor and battery pack are now showing its age. Aivaras Grigelevicius, an automotive expert at carVertical, shared, 'There's nothing wrong with offering an EV at an affordable price, but affordability shouldn't come at the expense of better battery technology or faster charging speeds.' He also pointed out a big flaw: 'The Leaf still uses the outdated CHAdeMO charging port, which is being phased out from many charging stations nationwide.' Find Out: 2024 Jaguar I-Pace MSRP: $73,375 to $73,875 Despite being an all-power vehicle with stunning looks and regenerative braking, the Jaguar I-Pace is falling behind due to a lack of updates. In fact, the 2024 model is last release for this specific line. Grigelevicius explained, 'Jaguar's decision to neglect it and avoid substantial updates over the years has made it noncompetitive.' He added an important point for potential buyers: 'The biggest issue is Jaguar's choice to discontinue the I-Pace without a direct replacement, as the company shifts to the high-end, more expensive EV market in 2025. This radical transformation will likely impact the support for the I-Pace and other existing models.' 2025 Toyota bZ4X MSRP: $38,520 to $45,330 Toyota's entry into the EV market has been less than impressive. Grigelevicius didn't mince words. 'If anyone wants to see the attitude of one of the biggest companies in the world toward electric cars, the Toyota bZ4X is a prime example. It lacks innovation, features, refinement and a decent range. Even the charging speed is mediocre, and it just doesn't make any financial sense to buy one in 2025 or beyond unless Toyota makes dramatic improvements to the bZ4X.' 2025 Tesla Model X MSRP: $86,630 to $101,630 Chris Pyle, an auto expert at JustAnswer, raised concerns about the Model X's signature feature. 'There have been and still are concerns with those winged doors working right and sealing properly,' he said. He also shared a potential issue with its performance: 'The car has too much power, resulting in it being used up too often, and then the driver finds themselves running out of battery power sooner than expected.' 2025 Ford Mustang Mach-E MSRP: $39,990 to $57,990 Pyle suggested thinking twice before buying a Mach-E. 'Ford is still in the learning curve,' he said. 'This car did have a battery overheating concern, and it may still not be addressed fully.' He also humorously pointed out a social downside. 'As soon as you say electric Mustang, you are going to hear over and over this is not a Mustang at all, and hear about the Mustangs they used to and still own.' 2025 Rivian R1S MSRP: $78,450 to $107,700 While innovative, Rivian vehicles come with a potential financial risk. Pyle warned, 'If you ever scratch it or bend a body panel, especially on the bed, get ready to cry. I have seen plenty of fender benders where this vehicle was in excess of $20K to repair cosmetic parts only.' 2026 GMC Hummer EV MSRP: $99,095 to $107,195 Pyle is skeptical about one of the Hummer EV's touted features: 'Four-wheel steering. It was a […] flop the last time they tried it, and it will be again. More stuff to fail that is just not needed. It is a big SUV proving that you can tow or go off-road with an EV. How often will you be parallel parking and need four-wheel steering in those scenarios?' Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 6 Electric Vehicles To Avoid Buying This Year
