NEW YORK - Tesla reported a hefty drop in second-quarter profits due to the effect of price cuts while spending aggressively on artificial intelligence and other technology.
Elon Musk's electric vehicle company reported profits of $1.5-billion, down 45 percent, on revenues of $25.5-billion, up two percent.
Tesla's earnings per share missed analyst expectations, while revenues exceeded them.
The results demonstrate the hit from a series of price cuts across major markets in response to stiffening competition among EV makers.
While overall vehicle sales fell compared to the year-ago period, they rose from the level in the first quarter as "overall consumer sentiment improved," Tesla said in its earnings powerpoint.
Tesla vowed to press on with new technological pushes in artificial intelligence and autonomous driving.
Earlier this month, Tesla postponed a much-anticipated robotaxi event planned for August until October.
While the "timing of Robotaxi deployment depends on technological advancement and regulatory approval, we are working vigorously on this opportunity given the outsized potential value," Tesla said.
The results come as Musk has lately deepened his commitment to electoral politics, coming out loudly for Donald Trump in the 2024 presidential election despite the former president's longstanding denial of climate change -- which has been a professed Musk priority.
Shares of Tesla fell 2.5 percent in after-hours trading.