Tesla shares fell 12 percent Wednesday after the electric vehicle maker’s second quarter earnings fell short of expectations.
The company, led by billionaire tech mogul Elon Musk, brought in $25.5 billion in the three-month period between April and June, up 2 percent from the same period last year.
However, Tesla’s net income fell 45 percent, from $2.7 billion in the second quarter of 2023 to $1.5 billion in the second quarter of 2024, despite efforts to cut costs, including widespread layoffs.
In April, Musk announced plans to cut more than 10 percent of the company’s global workforce.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” he said in a memo to staff at the time.
“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 percent globally,” Musk added.
The lackluster earnings report follows a weak performance from the EV maker in the first quarter as well. Tesla’s net income was down 55 percent in the three-month period between January and March.
However, Tesla stock rose on the first-quarter results, after Musk said the company was planning to bring forward production of its smaller, more affordable models.