Tesla automotive revenue falls 7% in Q2, robotaxi timing unclear
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The Tesla Model Y and Model 3 are seen on display at a company store in Tokyo. Photo: Stanislav Kogiku/SOPA Images/LightRocket via Getty Images
Tesla on Tuesday reported record quarterly revenue — but not because of its car business.
Why it matters: Tesla's energy division supported the overall company's recent quarter amid a broader slowdown in adoption of EVs.
Driving the news: The EV maker reported revenue of $25.5 billion in the second quarter, up 2.2% from a year earlier and ahead of S&P Capital IQ estimates of $24.7 billion.
- Automotive revenue, however, declined by 7% to $19.9 billion from $21.6 billion last year. Revenue from regulatory credits tripled to a record $890 million, helping to keep gross margins relatively steady.
- Tesla vehicle deliveries — a close approximation of sales — totaled 443,956 in the second quarter, down 5% compared with a year earlier.
Meanwhile, the company's energy generation and storage revenue doubled to $3 billion — a new high — while services revenue (which includes collision repair and revenue from its charging network) increased 21% to $2.6 billion.
What they're saying: "We previously talked about the potential of the energy business, and now feel excited that the foundation that was laid over time is bearing the expected results," CFO Vaibhav Taneja said on a call with investors Tuesday afternoon.
The big picture: Tesla has been recently talking more and more about its autonomous taxi service that will rely on Tesla owners opting into a network of Uber-like drivers.
- The company's pivot toward this vision has helped keep investors bullish, but a delay of its robotaxi reveal by two months to October, and details revealed on Tuesday do not seem to adequately satisfy concerns.
When asked on the call when Tesla expects to provide its first robotaxi ride, CEO Elon Musk said "Obviously my predictions on this have been overly optimistic in the past ... possibly by the end of this year. I would be shocked if we cannot do it next year."
- Tesla investors dumped the stock after-hours, sending shares down more than 7%.
Zoom out: The vehicle sales decline, restructuring charges, increased AI expenses and price cuts weighed on the bottom line, according to the company.
- The company recorded net income of $1.48 billion, down from $2.7 billion a year earlier. S&P had expected $1.69 billion.
Editor's note: This article has been updated with additional information from Tesla's conference call.
