Elon Musk, CEO of Tesla, warned that 'the company will face several difficult times ahead.' This statement came immediately after Tesla announced its worst quarterly performance in years, as the market is paying attention to the gap between the declining profitability of core businesses and future technology blueprints.
According to Bloomberg News, Musk said in a conference call held after the earnings announcement on the 23rd (local time), 'If Tesla achieves good results in autonomous vehicles and humanoid robots, it can become the most valuable company in the world.' He continued, 'However, this process will face challenges at an early stage,' acknowledging uncertainty. He presented the humanoid robot 'Optimus,' along with Tesla's artificial intelligence and proprietary semiconductor chip design capabilities, as the company's future core assets, heralding a technological transition based on them.
Tesla's revenue for the second quarter recorded $22.5 billion, a 12% decrease compared to the previous year. This is the largest decline in at least 10 years. Adjusted net income was 40 cents per share, falling short of market expectations. A decline in vehicle deliveries, a drop in average selling prices, and a reduction in revenue from regulatory credits were identified as the main factors for the disappointing performance. In particular, revenue from regulatory credits plummeted by 26% compared to the same period last year.
Musk also expressed concerns that the end of U.S. tax incentives for electric vehicles and tariff policies from the Trump administration could negatively impact Tesla's demand. In fact, the automotive sector, which is Tesla's core business, is currently affected by the termination of electric vehicle incentives and a slowdown in consumption in the U.S.
During the conference call, Musk revealed his intention to defend his management rights. He noted that 'my control over Tesla must be sufficient to lead the company in the right direction' in response to recent challenges posed by some activist investors who questioned the reduction of their stakes. He added, 'However, if I go crazy, I could be ousted.' Musk is continuing legal actions related to the billions of dollars in Tesla stock options that were nullified by a recent court ruling, while the company has transferred its headquarters from Delaware to Texas.
Some observers believe that Tesla is at a turning point as it seeks to redefine itself not as a traditional automobile manufacturer, but as a specialized AI and robotics corporation. Adam Crisafulli, founder of market research firm Vital Knowledge, stated, 'If you see Tesla's core as its automotive business, then this performance is disappointing. However, if you view it as an AI and robotics company, the same investment judgment remains possible.'
Experts are placing greater significance on Musk's statements than on the performance figures themselves. Whether Musk's strategy, which emphasizes technological vision, can translate into actual business performance has emerged as a key variable in assessing Tesla's future stock price and corporate value.
Meanwhile, Tesla's stock price dropped over 5% in after-hours trading immediately following the earnings announcement. The stock price has fallen nearly 18% so far this year, with a slight rebound from the lows in March and April.