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The Sun
6 days ago
- Automotive
- The Sun
Iconic car brand suffers worst sales slump in over a DECADE amid ‘rough times' – and pledges to make cheaper models
AN ICONIC car brand has suffered its worst sales slump in over a decade and is pledging to make cheaper models. The electric carmaker reported a whopping 12% drop in revenues over the second quarter of the year. 2 2 Tesla's sales and profits have come in lower than analysts have expected. The company is now focusing on a new, cheaper model amid rising competition and political backlash with autonomous driving key to future revenue growth, according to CEO Elon Musk. Musk said the company "could have a rough few quarters" before then. "I'm not saying we will, but we could - you know, Q4, Q1, maybe Q2 but once you get to autonomy at scale in the second half of next, certainly by the end of next year, I think I'd be surprised if Tesla's economics are not very compelling," he said. The brand faces strong competition from cheaper electric vehicles, especially in China, as well as a backlash against Musk's former political association with President Donald Trump. As a result, Tesla said it was looking to ramp up production of a more affordable model in the second half of this year, slower than initially expected. The company gave no further details but it points toward investor concerns that the appeal of Tesla's range is limited when compared to that of competitors. The results were the first since Musk and Trump's relationship dramatically ended in June. Tesla's shares remain almost 18% down over the year to date. This can largely be explained by a 2025 sales slowdown, Tesla's unique exposure to Trump's trade war and the backlash against Musk's former role in the Trump administration which enacted massive cuts to federal spending. Customers around the globe have also been put off by Musk's interference in national elections as well as competition from cheaper alternatives to Tesla's EV range. And despite Musk's departure from Washington, the fallout with Trump has left Tesla exposed to potential retaliation from the White House. The company's profits are threatened through a potential loss in government subsidies - something threatened by the president. Tesla had revealed earlier this month that production and deliveries in the last quarter were below what was expected. Over 384,000 Teslas were delivered during that period which is a 13.5% fall on the same period last year. It also marks the second consecutive quarterly sales decline. Tesla said in their quarterly update: "Q2 2025 was a seminal point in Tesla's history: the beginning of our transition from leading the electric vehicle and renewable energy industries to also becoming a leader in AI, robotics and related services. "Despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment, we continue to make high value investments while ensuring a strong balance sheet." The company has also said that it continued to expect volume production of its custom built robo-taxi - the Cybercab - and Semi Truck in 2026. Much of the carmaker's trillion dollar valuation depends on the success of its robo-taxi service with small trials starting in Texas last month. But some video footage has since suggested evident driving mistakes. Musk had previously suggested the service would soon reach the San Francisco Bay area, Nevada, Arizona and Florida depending on regulatory approval.
Sky News
6 days ago
- Automotive
- Sky News
Tesla looks to cheaper model as revenue suffers worst drop in over a decade
Tesla has started limited production on a cheaper model in a bid to boost sluggish demand after revealing its worst slump in quarterly sales for over a decade. The electric carmaker, effectively run part-time by founder and CEO Elon Musk for much of this year after his now-defunct spell at the heart of Donald Trump's government, reported a 12% drop in revenues over the second quarter of the year. Its update showed a total of $22.5bn, despite aggressive discounting and low-cost financing put in place to help shield Tesla from many headwinds. They include strong competition from cheaper electric vehicles and a backlash against Musk's former political alignment with the president. Sales and profits came in lower than analysts had predicted. Tesla said it was looking to ramp up production of the more affordable model during the second half of this year. It gave no further details but it is a nod to investor concerns that the appeal of Tesla's range is restricted when compared to that of competitors. The results were the first for shareholders to digest since the so-called bromance between Mr Musk and Donald Trump ended acrimoniously in June. 1:25 Tesla's shares remain almost 18% down over the year to date - lagging a recovery among rivals - and were flat in extended trading. The drag can mainly be explained by the 2025 sales slowdown, Tesla's particular exposure to the president's trade war and the often violent backlash against Musk's former role in the Trump administration which enacted big cuts to federal government spending. Globally, customers have been put off by interference by Musk in national elections, particularly in Germany, and stiff competition from cheaper alternatives to Tesla's electric car ranges. 0:19 While his departure from Washington allowed the tech tycoon to focus more on his vast business ventures, his beef with the president over the cost of the Big Beautiful tax and spending Bill has left Tesla exposed to retaliation from the White House. Recent analysis by Sky News showed the extent to which the company's profitability is threatened through the potential loss of billions of dollars in government subsidies - a sanction threatened by the president. The latest set of results showed a steady income from these so-called regulatory credits, amounting to $435m between April and June. That was down from the $458m reported for the same period last year. 3:31 Tesla had revealed earlier this month that production and deliveries covering the quarter were below expectations. A total of 384,122 Teslas were delivered in the period, a 13.5% fall on the same period last year. It marked the second consecutive quarterly sales decline and were not helped by the changeover to the refreshed Model Y. One other thing investors were eagerly awaiting news on was the supervised self-driving Robotaxi trial - launched last month in Texas. Videos have since suggested some evident driving mistakes. Musk has previously said the service would soon reach the San Francisco Bay Area, depending on regulatory approvals, and no update was given on whether papers had yet been filed.
France 24
21-07-2025
- Automotive
- France 24
US tariffs, laws push Jeep owner Stellantis into 2.3-bn-euro first-half net loss
The 2.3-billion-euro ($2.7-billion) net loss in the first half of the year came as sales in North America continued to slump, down 25 percent by volume in the second quarter year-on-year. The carmaker, whose stable of brands also includes Peugeot, Citroen and Fiat, said first-half net revenues dropped 12.6 percent to 74.3 billion euros, according to the preliminary and unaudited results. Sales of vehicles fell by six percent in the second quarter year-on-year, after having dropped nine percent in the first three months of 2025. Stellantis said "the early effects of US tariffs" had a 300-million-euro negative impact and disrupted its plans to respond to its struggling performance in North America. Automakers have struggled to respond to a new US tariff of 25-percent on imported cars that are not largely made within North America. Stellantis fell into a net loss when it took a 3.3-billion-euro charge, which it said was "primarily related to programme cancellation costs and platform impairments, net impact of the recent legislation eliminating the CAFE penalty rate and restructuring". US President Donald Trump's massive tax and spending legislation, approved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can produce and sell more higher polluting cars in the United States. Stellantis suspended its financial guidance in April due to the heightened uncertainty generated by US tariffs. The company said it was in the early stage of taking action to improve performance and profitability, with new products expected to deliver a larger impact in the second half of 2025. Shares in Stellantis fell more than two percent as trading got underway on the Paris stock exchange. Stellantis said it would release audited first half results on July 29 as scheduled.
The Guardian
18-07-2025
- Automotive
- The Guardian
Jaguar Land Rover delays launch of new Range Rover Electric
Britain's largest carmaker, Jaguar Land Rover, has delayed the planned launches of its new electric Range Rover and electric Jaguar models to give it time for more testing and for demand to pick up, the Guardian can reveal. JLR has written to customers waiting for the Range Rover Electric to inform them that deliveries of the new version of the model will not start until next year, after initially aiming for late 2025. Two people with knowledge of the carmaker's plans said that two planned Jaguar models – much anticipated since a viral pink-and-blue rebrand – may also be pushed back by several months compared with original plans. JLR has been hit by the impact of Donald Trump's tariffs in recent months; this week it reported a 15.1% drop in sales in the three months to June after a temporary pause in exports to the US. It has also opened a voluntary redundancy scheme for up to 500 managers in an effort to save costs. However, sales are expected to improve after the UK's limited trade deal with the US provided for lower 10% tariffs on the first 100,000 exports. The company has reported a profit for the past 10 consecutive quarters after a turnaround effort. The carmaker, owned by the Indian conglomerate Tata, has been more cautious in embracing electric technology than luxury vehicle rivals. That had left it in danger of steep fines for failing to hit UK electric vehicle sales targets, but that pressure has eased after the UK weakened the rules, known as the zero emission vehicle (ZEV) mandate, in response to heavy lobbying by carmakers including JLR. A JLR spokesperson said: 'By 2030 JLR will sell electric versions of all its luxury brands. Our plans and vehicle architectures are flexible so we can adapt to different market and client demands. We are committed to the highest standards of design, capability and quality, and we will launch our new models at the right time for our clients, our business and individual markets.' Model launch delays of several weeks or even months are not unusual, as carmakers try to align their products to the market. Getting the launch date right is particularly important for Jaguar, which JLR is hoping to reinvent as an electric-only brand that will appeal to younger, wealthier buyers. A promotional campaign in December featuring bright pink and blue concept cars spurred a huge wave of interest – as well as a culture war backlash after a teaser trailer featuring a diverse group of models. The start of production for the first Jaguar electric car since the rebrand, known for now as the Type 00, is set for August 2026, according to a source with knowledge of schedules. Although prices have not yet been confirmed, it is expected to cost more than £100,000. The second Jaguar model may not then follow until December 2027. A new electric version of the Range Rover Velar is also set to start production in April 2026, although it also could be delayed further, the source said. An electric model under the Defender sub-brand could start production in the first quarter of 2027. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion JLR declined to comment on specific model launch dates. Two people with knowledge of JLR's manufacturing operations said the delays had partly been caused by the need to carry out extended testing, because they are the first electric models to to be directly built by the manufacturer. JLR previously sold the electric Jaguar I-Pace, but it was built by a contract manufacturer. One of the people said the delays may not harm JLR financially, because they will allow the company to continue to sell its lucrative petrol and diesel hybrid versions. People inside JLR have said 'the delay has worked in our favour' and 'let's not rush this', the person said. Trump's policies have also made a delay more attractive for JLR, because his administration is actively trying to discourage the shift to electric cars in the US, the manufacturer's key market. Trump's brief period of collaboration with the Tesla boss, Elon Musk, has collapsed into acrimony. JLR's slower shift to electric vehicles would also align with the start of production by a battery factory being built by Tata in Somerset. The plant, built by a subsidiary named Agratas, is due to start production in the last quarter of 2027, according to Tata Motors's latest investor call. That is a year later than the company initially planned.
The Guardian
17-07-2025
- Automotive
- The Guardian
Jaguar Land Rover to axe 500 UK management jobs as Trump tariffs fallout dents sales
Jaguar Land Rover has said it will axe up to 500 management jobs in the UK after reporting a plunge in sales linked to Donald Trump's tariffs. The British luxury carmaker said about 1.5% of its staff in the UK would be affected by the cuts as part of a voluntary redundancy round for managers. JLR, which is owned by India's Tata Motors, employs 33,000 people in the UK. The car manufacturer reported a 15.1% drop in sales in the three months to June after a temporary pause in exports to the US. JLR stopped shipments to the US in April after Trump imposed a 25% duty on all foreign-made vehicles, before resuming them in May. The country accounts for more than a quarter of JLR's sales. Trump and Keir Starmer have agreed a trade deal that allows the UK to export 100,000 cars a year to the US at a 10% tariff, reduced from the 27.5% levy imposed on other countries. Britain's ambassador to the US, Peter Mandelson, said shortly after the deal was agreed that it had immediately prevented job losses at JLR's factory in the West Midlands. JLR's chief executive, Adrian Mardell, said the deal would help to sustain 250,000 jobs across the car industry. Mandelson told CNN at the time: 'This deal has saved those jobs … That's a pretty big achievement in my view, and I'm very pleased that the president has signed it.' Starmer spoke to Trump while visiting JLR's Solihull factory in May as he announced a trade deal with the US. On Thursday, a spokesperson for JLRthe carmaker said: 'JLR regularly offers eligible employees voluntary redundancy programmes. Through this limited UK VR programme for managers, JLR is aligning its leadership workforce for the business's current and future needs. 'We are grateful to the government for delivering at speed the new UK-US trade deal, which gives us the confidence to invest £3.5bn per annum to realise our strategy, which is delivering.' British businesses have reported that they are under pressure from the increase in employer national insurance contributions. The official unemployment rate rose to 4.7% in the three months to May, up 0.1% from April. The shadow business secretary, Andrew Griffith, said Jaguar's plans to cut jobs was 'a huge personal embarrassment for Keir Starmer'. 'Two months ago, the prime minister looked workers at JLR in the eye and promised them he would protect their jobs – now 500 are to go,' he told the Telegraph. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'This government isn't serious about business – the jobs tax, the union red tape and their net zero obsession. It's no wonder unemployment is rising.' Downing Street said Jaguar's plan to cut jobs in the UK was disappointing. A spokesperson for No 10 said: 'We are working closely with JLR. We're backing British carmakers through our plan for change, including £2.5bn over the next decade to support the shift to electric vehicles, more flexibility in the Zev [zero emission vehicle] mandate and new incentives like the electric car grant and those trade deals such as those with the US and India will cut tariffs and open up new export opportunities for UK manufacturers. 'So whilst this news is disappointing, we're taking real action to support jobs and investment in the long term.' Jaguar told its investors in June that, as a result of tariff uncertainty, it was lowering its forecast for margins on underlying profits, measured by earnings before interest and taxes, to between 5% and 7% this year, from 10% previously estimated. The company achieved a profit margin of 8.5% in the year to 31 March. The company reported a 12.2% drop in wholesale sales in North America. Sales in the UK also fell 25.5% in its second quarter after the planned wind-down of older Jaguar models. The company stopped selling new cars in the UK late last year as part of its shift towards new electric models, which are expected to hit the market in 2026.
