GoKawiilElon Musk is interviewed on CNBC from the Tesla headquarters in Texas.
Tesla reported weaker-than-expected earnings for the second quarter even as revenue topped estimates. The stock slid almost 3% in extended trading on Wednesday.
Here's how the company did compared to Wall Street expectations, according to estimates from analysts polled by LSEG
Earnings per share : 33 cents adjusted vs. 51 cents expected
: 33 cents adjusted vs. 51 cents expected Revenue: $28.24 billion vs. $25.71 billion expected
Tesla's earnings report lands in the midst of a steep decline in its stock price, which is down about 11% this month and 17% for the year. That slide has coincided with a drop in SpaceX, Elon Musk's other trillion-dollar company, which held a record market debut in June and has lost more than 40% of its value since its peak close.
Revenue in the period jumped 26% from $22.5 billion a year earlier, the company said in a statement. Net income fell 5% to $1.11 billion, or 32 cents a share, from $1.17 billion, or 33 cents per share, a year earlier.
Tesla's core automotive segment generated $20.52 billion in revenue, up 23% from a year ago. Revenue in the energy business, which consists of solar and battery energy storage systems, increased 13% to $3.14 billion. In its services and other business, which includes fees for repairing vehicles out of warranty, revenue jumped 50% to $4.58 billion.
Despite better-than-expected revenue in its auto business, the company's gross margin dropped and missed estimates as average selling price per vehicle fell and regulatory credit revenue declined. Gross margin, or the profit left after accounting for the cost of goods sold, slid to 16.8% from 17.2% a year earlier. Analysts expected 19.4%, according to StreetAccount.
During the quarter, Tesla sold lower-cost version of its popular Model 3 and Y vehicles after retiring its more expensive, flagship Model S and X vehicles.
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