Elon Musk’s electric vehicle maker reported profits of US$1.1 billion, down about five percent from the year-ago level. That translated into 33 cents per share compared with analyst estimates of 53 cents per share.
Revenues rose 26 percent to US$28.2 billion.
Tesla had impressed market watchers earlier this month when it released higher-than-expected second-quarter auto sales, due in part to a recovery in European markets.
But the company’s earnings press release said profitability was dented by lower vehicle sales prices, lower revenue from regulatory credits and an unspecified “vendor cell issue” that led to an increase in “energy warranty-related charges.”
Tesla described its expansion initiatives as in line with plans, saying it began production of its “Cybercab” vehicle in Texas and that the Tesla Semi production “remains on track” for this year.
In another closely watched item, Tesla reported gains in subscribers to its “FSD” driver-assistance programme, boosting revenues.
Tesla has said it plans to spend more than US$25 billion on ambitious initiatives in autonomous transport, humanoid robotics and artificial intelligence.
“Tesla is in its largest and most exciting period of investment,” the company said.
“From here, there remains much hard work as we aim to revolutionise transportation, energy and productivity through our leading real-world AI. Scaling will be non-linear, and we are focused on long-term value creation.”
Shares dropped 2.4 percent in after-hours trading. (AFP)
