Tesla's Per-Car Profit Fell Another 8% Last Quarter, and I Fear This May Be the New Norm

Tesla's Q2 earnings missed analyst expectations despite strong delivery numbers. The company's per-car profit declined 8% as production costs rose over $6,000 per vehicle while revenue per car fell $2,613. Increased competition from rivals like BYD, which delivered 557,090 battery-electric vehicles in Q2, is pressuring Tesla's pricing power. While Tesla's stock valuation is supported by AI and robotics ambitions, the core EV business shows concerning margin compression.