Tesla Inc. on Tuesday reported a big drop in second-quarter profit as it cut vehicle prices while increasing spending on artificial intelligence and other technologies.
The electric car company owned by Elon Musk said its profit was $1.5 billion, down 45 percent from total revenue of $25.5 billion, up 2 percent, due to its energy generation and storage business.
Tesla's earnings beat analysts' expectations, but revenue beat them.
The results are the latest amid tough times for the electric car giant, which is facing increasing competitive pressures that have led to a series of price cuts in leading markets.
Earlier this year, Tesla laid off 10 percent of its global workforce, or about 14,000 workers, as part of a cost-cutting drive to fund major new investments.
Tesla said in its earnings statement that while overall vehicle sales were down compared to the same period last year, they were up from the level recorded in the first quarter.
While the company reiterated its expectations that sales volume growth could be significantly lower than last year, it said it is set to start production of new, more affordable models in the first half of 2025.
Tesla has pledged to continue advancing in the field of artificial intelligence and self-driving vehicles.
