Electric carmaker Tesla’s earnings have dropped almost in half due to discounts and price cuts affecting profit margins. CEO Elon Musk attributed this to increased competition from rivals. However, Tesla is still pushing forward with plans for robotaxis, artificial intelligence, and humanoid robots. Despite cooling demand, the company aims to begin production of its next-generation Roadster sports car next year.
Although total sales for the latest quarter exceeded expectations, profits decreased by 45%. This led to a 6.9% drop in Tesla’s shares during out-of-hours trading. Musk remains optimistic, calling discounting in the electric vehicle market a short-term issue. He recently made headlines for endorsing Donald Trump for president and planning to relocate Tesla’s headquarters from California to Texas.
Tesla shareholders previously approved a $45bn pay deal for Musk in June, showing support for his leadership. Analysts believe Tesla has clear momentum and is on track to increase production to 2 million vehicles annually in the coming quarters.
In conclusion, Tesla is facing challenges in the market despite its innovative plans for the future. Musk’s leadership and ambitious goals for the company continue to be a focal point of interest.
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