Tesla’s second-quarter profit dropped over 40% due to increased competition from other electric vehicle (EV) manufacturers and a slowdown in overall EV sales growth. Despite being the world’s most valuable automaker, Tesla is facing intense competition both domestically and internationally. In the second consecutive quarter of declining sales volume, Tesla reported adjusted income of $1.8 billion, falling short of analysts’ expectations. The company’s profit margin was significantly lower due to several EV price cuts. Tesla did not provide a new sales target for the full year but cautioned that its vehicle volume growth rate in 2024 may be noticeably lower than in 2023. After-hours trading saw Tesla’s shares drop by 4%, with a 1% decrease in shares for the year.
