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Tesla’s 2Q profit falls 45% to $1.48 billion as sales drop despite price cuts and low-interest loans

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DETROIT (AP) — Tesla’s second-quarter net income fell 45% compared with a year ago as the company’s global electric vehicle sales tumbled despite price cuts and low-interest financing.

The Austin, Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. It was Tesla’s second-straight quarterly net income decline.

Second quarter revenue rose 2% to $25.5 billion, beating Wall Street estimates of $24.54 billion, according to FactSet. Excluding one time items, Tesla made 52 cents per share, below analyst expectations of 61 cents.

Earlier this month Tesla said it sold 443,956 vehicles from April through June, down 4.8% from 466,140 sold the same period a year ago. Although the sales were were better than the 436,000 that analysts had expected, they still were a sign of weakening demand for the company’s aging product lineup.

For the first half of the year, Tesla has sold about 831,000 vehicles worldwide, far short of the more than 1.8 million for the full year that CEO Elon Musk has predicted.

The company’s widely watched gross profit margin, the percentage of revenue it gets to keep after expenses, fell once again to 18%. A year ago it was 18.2%, and it peaked at 29.1% in the first quarter of 2022.

Tesla said it posted record quarterly revenue “despite a difficult operating environment.” The company’s energy-storage business took in just over $3 billion in revenue, double the amount in the same period last year.

Shares of Tesla fell 4% in trading after Tuesday’s closing bell. The shares had been down more than 40% earlier in the year, but have since recovered most of the losses.

Revenue from regulatory credits purchased by other automakers who can’t meet government emissions targets hit $890 million for the quarter, double Tesla’s amount of most previous quarters.

The company reported $622 million in “restructuring and other” expenses for the quarter, when it laid off over 10% of its workforce.

Tesla said in a note to investors that it’s between two major growth waves, with the next one coming through advances in autonomous vehicles and new models. But the company reiterated caution that its sales growth “may be notably lower than the growth rate achieved in 2023.”

The company said plans for new vehicles, including more affordable models, are on track for production to start in the first half of next year. Tesla has hinted at a smaller model costing around $25,000. The models are to be built using some aspects of current vehicles and others from the next-generation underpinnings.

The company said average selling prices for its Models S, X, 3 and Y all dropped due to the price cuts and financing offers. It also said that the Cybertruck became the best selling electric pickup in the U.S. during the quarter.

The Canadian Press. All rights reserved.

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Girl, 14, charged with attempted murder after allegedly setting classmate on fire at Sask. high school – CBC.ca

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Girl, 14, charged with attempted murder after allegedly setting classmate on fire at Sask. high school  CBC.ca

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Trudeau insists he’s staying on as Liberal leader. But what if he changes his mind?

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OTTAWA – The Liberal caucus is set to meet in Nanaimo, B.C., next week for a retreat ahead of the fall parliamentary sitting. Prime Minister Justin Trudeau insists he will lead his party into the next election despite polls citing his unpopularity among Canadians. Here’s a look at what would happen if he decided to call it quits.

Could Prime Minister Justin Trudeau step down?

Absolutely. But a decision to step down becomes a lot harder now that the New Democrats have pulled out of a supply and confidence agreement with the Liberals, which has helped keep the minority government in power. If Trudeau were to resign, the New Democrats could vote with the Conservatives on a confidence motion and trigger a snap election. That could leave the Liberal party without a leader as parties vie for votes.

What would happen if he resigned?

An interim leader would be appointed and a leadership race would be triggered. The national president would have 27 days to call a meeting with the party’s board of directors. A leadership vote committee would also form to plan, organize and carry out the leadership vote.

How quickly could a new leader be named?

It’s not typically a fast process. Trudeau won after a five-month race, but planning was in the works for years.

By comparison, it took two years for the Conservatives to vote in a new leader after Stephen Harper’s resignation following the 2015 election.

The race that brought Pierre Poilievre to the helm of the Conservatives in 2022 lasted eight months.

The Liberal party constitution lays out the process for any potential nominee. They have at least 90 days before a leadership vote to announce their intention to run. They need at least 300 signatures from registered Liberals, 100 of which must come from Liberals in three different provinces.

Could Trudeau resign but finish out his mandate?

Yes. But again, it would be complicated given a Liberal minority government and the threat of a snap election. NDP Leader Jagmeet Singh acknowledged this week that an election could happen earlier than initially expected, which is currently set for October of 2025.

Has a prime minister ever stepped down before?

Yes. In 2002, prime minister Jean Chrétien, facing a challenge from former finance minister and longtime rival Paul Martin, announced he would not lead the Liberals into the next election.

And in 1993 prime minister Brian Mulroney resigned as Progressive Conservative leader. Kim Campbell, defence minister in Mulroney’s cabinet, won the contest to succeed him.

Trudeau’s popularity has also faded, so why is this different?

Chrétien and Mulroney had majority governments, allowing leadership races to unfold without the threat of their administrations falling.

Though there have been rumblings of discontent about Trudeau from within his party, he continues to enjoy the public support of the cabinet and caucus. The exception is Liberal MP Wayne Long, who has called for his resignation.

In addition, there is no obvious heir apparent to Trudeau. Among the rumoured contenders for his job are Deputy Prime Minister Chrystia Freeland, Industry Minister François-Philippe Champagne and former Bank of Canada governor Mark Carney.

Why were the U.S. Democrats able to replace their candidate for president?

Canada and the U.S. have different systems of government, and Democrats and Liberals have their own sets of party rules.

Even though U.S. President Joe Biden was the Democrats’ presumptive nominee for president, he was not yet their official candidate. This allowed the Democrats to switch candidates before their convention in Chicago last month.

It’s always up to Democratic delegates at their convention to formally vote for an official presidential nominee.

And because there was no major challenge from within the party, it allowed for a smooth transition to replace Biden’s name on the ticket with that of U.S. Vice-President Kamala Harris.

Can Liberals oust Trudeau?

Unlikely. The Liberal party’s constitution says the party leader can be removed only because of a triggering event such as an electoral loss, incapacitation or death.

This report by The Canadian Press was first published Sept. 7, 2024.



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Woman wanted for murder in fatal Toronto shooting: police

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The Toronto Police Service is asking for the public’s help with a homicide investigation related to a shooting that left one dead last Sunday in the city’s west end.

Officers responded to a shooting call on September 1 at around 6 a.m. in the Eglinton Avenue West and Times Road area.

They found the victim with gunshot wounds, and he was transported to a hospital, where he later died.

The victim has been identified as a 37-year-old man from Brampton.

A Canada-wide warrant has been issued for a 36-year-old woman from Toronto, wanted for first-degree murder.

Police are calling on anyone with information to reach out to them or Crime Stoppers.

This report by The Canadian Press was first published Sept. 7, 2024.

The Canadian Press. All rights reserved.



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