Tesla stock fell approximately 12% Wednesday after the electric vehicle (EV) manufacturer released its second quarter results, showing a 40% drop in profits compared to this time last year, according to multiple reports.
The disappointing second quarter earnings come as Tesla faces increased competition and as EV sales have decreased overall, according to CNN. The drop in shares of Tesla Wednesday has caused a broader drop in stocks across the board.
According to reports, Tesla reported an adjusted income of $1.8 billion in the second quarter, or 52 cents a share, markedly lower than its projected earnings.
Earlier this year, Tesla reportedly warned that its vehicle production rate would likely slow in 2024, a contributing factor to its overall decreased sales.
Tesla's financial struggles follow months of turmoil for the company, which has been plagued by multiple rounds of vehicle recalls and mass layoffs in 2024.
The manufacturer is facing additional technical and regulatory obstacles as it plans to roll out a series of fully automated “robotaxis” later this year.
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