It has been expensive for Tesla to launch into a price war on electric cars and at the same time develop artificial intelligence.
It is not only Elon Musk's salary package that has cost Tesla enormous sums in the past year. A plunge in profit in the past year is due to several things.
Reuters writes that.
Specifically, Tesla's profit in the second quarter of 2024 has fallen by 45 percent. At least when compared to the same period last year.
The profit after the second quarter is now 'only' one and a half billion dollars, corresponding to just over 10.3 billion Danish kroner. So for the months April-June 2024.
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In the same period last year, Tesla shoveled 2.7 billion dollars – 18.6 billion Danish kroner – into profit. On the other hand, Tesla can note a two percent increase in revenue, which has now reached 25.5 billion dollars. Or 175.3 billion Danish kroner.
Among other things, it is Tesla's own price cuts on brand new cars as well as the car brand's investments in artificial intelligence that are hurting profits.
Tesla's pricing generally fluctuates a lot. Most recently, the Model 3 has been made 10,000 kroner more expensive in Denmark as a response to the EU's punitive tariffs on cars manufactured in China. It is because Tesla sends the Model 3 to Denmark from factories in the communist dictatorship.
After the publication of the accounts, investors reacted perhaps unsurprisingly negatively. Tesla's stock immediately fell 2.5 percent. However, the share's value is still among the highest in the entire automotive industry.
At the time of this article's publication, the value is around the $246 per stock. This corresponds to just under DKK 1,700.
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