Toronto, Ontario — In this weekly Tuesday Ticker, Tesla shares take a hit as CEO Elon Musk advises “notably lower” growth in 2024 compared to what was experienced in 2023. Plus, Stellantis struggles to gain its foothold in the North American market.
The Tesla tumble
Shares of Tesla dropped 11 percent last Wednesday as the EV maker delivered mixed second-quarter metrics.
Specifically, second-quarter net income fell 45 percent compared to a year ago, with decreased global EV sales to blame. Revenues rose two percent to US$25.5 billion; Tesla made 52 cents per share, falling short of analysts’ expectations of 60 cents per share.
The company reported revenue of US$25.05 billion, higher than the US$24.63 billion estimated by Bloomberg.
Tesla CEO Elon Musk advised listeners that the automaker’s growth would be “notably lower” than what was experienced in 2023.
While Tesla noted it’s still on schedule to produce new vehicles, potentially including a cheaper EV model, in the first half of next year, Musk announced the company’s autonomous taxi reveal date will be delayed until October 10. The reveal was originally slated for August 8.
As of Monday at 11:45 a.m., Tesla stock traded at US$228.62 per share, up 8.9 percent over the last month but down 7.98 percent year-to-date.
Stellantis on the brakes
Stellantis is cutting its output and prices in the North American market following weak results for the year’s first half. Globally, Stellantis’ net profit is down nearly 50 percent. Net revenues are down 14 percent.
Adjusted operating income was US$9.2 billion, representing a 10 percent margin. Adjusted diluted earnings per share dropped 35 percent.
The OEM said lower volumes and mix largely drove the poor financial performance.
“We have significant work to do, especially in North America, to maximize our long-term potential,” said Stellantis CEO Carlos Tavares.
Tavares added that the profitability of Stellantis’ North American region was number one; now, it’s the fourth-best market for the OEM.
Stellantis shipped 838,000 vehicles in North America during the first half of the year. As of Monday at 11:45 a.m., shares of Stellantis traded at €15.63 per share.
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