Tesla reported a decline in quarterly profit Wednesday as the company sold more electric cars but made less money on each sale.
Net profit in the second quarter was $1.1 billion, Tesla said, compared with $1.2 billion a year earlier. Sales rose sharply to $28.2 billion, compared with $22.5 billion. Analysts had expected sales of $27.6 billion and profit of $1.3 billion, according to estimates compiled by the company.
Tesla also reported big jumps in operating expenses and capital expenditures as it poured money into new technologies, like self-driving taxis, that do not yet generate significant revenue. Tesla is also investing in factories to make batteries, semi trucks and other products.
Very few automakers have reported large increases in profit recently. Overall sales are growing slowly, partly because of tariffs and the war in Iran, and established manufacturers are struggling to compete with fast-growing Chinese companies like BYD and Geely Auto that are pushing into Europe, Latin America and many Asian countries.
General Motors said Tuesday that its second-quarter profit fell 30 percent from a year earlier to $1.3 billion, though the company said it had earned more per vehicle.
Tesla reported this month that car sales were stronger than analysts had expected, largely because increases in Europe more than made up for declines in the United States.
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