Tesla, Elon Musk’s electric vehicle company, has reported a 45 percent decrease in second quarter profit to $1.5 billion.
The drop in profit has been reported to be as a result of price cut while investing aggressively on autonomous driving and other technology.
Tesla laid off 10 per cent, about 14,000 worker, of its global staff this year as part of a push to cut expenses to finance major new investments.
The Chief Financial Officer of Tesla, Vaibhav Taneja, said that reorganization also resulted in one-time expenses of $622 million in the second quarter due to severance and other costs,
While vehicle sales fell compared to the year-ago period, they rose from the level in the first quarter as “overall consumer sentiment improved,” Tesla said in its earnings presentation.
Although Tesla reaffirmed its expectation that vehicle volume growth may be “notably lower” than last year’s, it said new, more affordable models are set to begin production in the first half of 2025.
Get instant and latest news updates via Our WhatsApp Community or Google News online channel.