"Tesla got a sad report, while Google was happy. It looks like Elon Musk's style needs to be worked on again."
Beating analysts' expectations, Tesla's second-quarter margins slipped as the implementation of price cuts and incentives to stimulate faltering demand continued to hurt the electric vehicle giant's interim profits.
Reportedly, Tesla recorded an automotive gross margin excluding regulatory credits of 14.65% in the second quarter compared to estimates of 16.29% and this was the lowest quarterly margin in five years.
On Tuesday, Tesla's revenue was $25.50 billion for the three months ending June 2024 compared to $24.93 billion a year earlier while Tesla's regulatory credit sales nearly tripled to $890 million in the second quarter.
According to Tesla further in a statement, plans for new vehicles including more affordable models may begin production in the first half of 2025.
But the situation is different for Google's parent company, Alphabet, which managed to beat second-quarter revenue and profit estimates on July 23, 2024, driven by an increase in digital advertising sales and healthy demand for cloud computing services.
Alphabet's results underscore robust demand for digital advertising influenced by events such as the Paris Olympics and elections in several countries including the United States (US) while a recovery in spending is boosting the software business.
Advertising sales, Alphabet's main source of revenue, rose 11% to $64.6 billion while net income in the quarter ended June 30, 2024 jumped 28.6% to $23.6 billion, beating the average estimate of $22.9 billion.
