Telsa profit in the second quarter plunged more than 40% from a year ago, as the electric vehicle company has faced both more EV competition from established automakers and a slowing of overall EV sales growth.

The company said 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.

Tesla reported a surprise rise in revenue for second quarter as it handed over more electric vehicles than analysts had expected, helped by price cuts and incentives. Shares of the electric-vehicle maker were down about 4% in trading after the bell.

Net profit tumbled 45% in the second quarter as the electric-vehicle leader continued to feel the impact of slower demand and stiffer competition.

Tesla Inc. reported its fourth straight quarter of disappointing profits on Tuesday, and Chief Executive Officer Elon Musk made clear that better days are still a ways off.

Tesla on Tuesday reported its lowest profit margin in more than five years and missed Wall Street earnings targets in the second quarter, as the electric vehicle maker cut prices to revive demand while it increased spending on AI projects.