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Tesla struggles with falling profits and poor sales in Q2

Tesla struggles with falling profits and poor sales in Q2

2023 marked something of a high point for Tesla Inc. Just two years after it became the world’s first trillion-dollar automaker, the crown jewel of billionaire Elon Musk’s tech empire saw its Model Y line supplant Toyota’s RAV4s and Corollas as the best-selling cars on the planet. That Tesla has become a behemoth not just in electric vehicles but in the auto industry at large in less than two decades since its first car rolled off the assembly line is undeniable.

Also undeniable are the problems Tesla has faced of late. Increased competition in the marketplace, combined with recalls, rollout challenges and a renewed focus on CEO Musk’s personal and political output, have contributed to a renewed sense that a brand once virtually synonymous with electric vehicles may no longer have the horsepower it once had. Tesla shares fell last week after the company’s second-quarter profit plunged more than 40% from the previous year. The decline is a “stark contrast for a company that has become the world’s most valuable automaker on the back of rising sales and profitability,” according to CNN.

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