Tesla’s Q2 earnings reveal a troubling trend: profit per vehicle dropped 8%, even as deliveries rebounded. Rising production costs and fierce competition—especially from BYD in Europe—are squeezing margins. While investors already price in bets on AI and robotics, Tesla’s core EV business may struggle to fund those ambitions without stronger per-car profitability. Delivery numbers look good, but the real test is whether Tesla can turn volume into sustainable profits.
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