Elon Musk and Tesla: The 2024 Second Quarter Report Was Disappointing

Elon Musk and Tesla: Disappointments and Expectations

The famous billionaire Elon Musk, who has been at the forefront of technology and business for years, attracts attention not only for the money he makes but also for his losses. Known for sending a sports car into space, Musk is now in the spotlight for Tesla’s problems. Setting aside the fact that the car he sent to Mars will actually remain in orbit for billions of years in the solar system, Tesla’s sales continue to decline rapidly.

Especially the results of the first quarter of 2024 were disappointing for investors. Now, the second-quarter financial reports have been released, and the disappointment continues. Tesla announced that it achieved $25.5 billion in sales and a net income of $1.48 billion, but this figure reflects only a 2% year-over-year increase compared to the $24.9 billion in sales in the second quarter of 2023. However, the 45% drop in net income indicates that alarm bells are starting to ring for the company.

The company reported an 18% gross margin in its report; this figure is slightly higher than the 17.4% reported in the previous quarter. However, this rate is also at a lower level compared to the second quarter of 2023. So, are electric vehicle sales increasing worldwide?

• In a letter sent to shareholders, Tesla emphasized that customers are returning to the trend of purchasing electric vehicles.
• It stated globally that “the penetration of electric vehicles has returned to growth.”

These developments could trigger a new wave of decline in the company’s shares. However, considering Elon Musk’s past filled with stock speculation and penalties certified by official institutions, it may be thought that this would not upset him too much. After all, Musk is known as a very eager boss to buy stocks and cryptocurrencies at a low price as prices fall.