Cheap cars hit Tesla profits as tech pivot stalls

autocar.co.uk Aug 5, 2026

Cheap cars hit Tesla profits as tech pivot stalls

Curated by Shubham · TechCapsules · Aug 5, 2026

AI-summarised brief · reviewed before publication

Tesla reported a sharp decline in second‑quarter operating profit, with the margin falling to 1.4% from 4.1% a year earlier. The company delivered 451,758 vehicles, a 10% increase, yet the average selling price dropped, eroding returns on its core lineup. The move underscores a setback in Tesla’s announced shift from automotive manufacturing to an AI‑driven technology focus. The company’s financials reflect the challenge of sustaining profitability amid pricing pressure and a pivot that has yet to materialize fully.

💡 Why It Matters

· The narrowing margin signals that Tesla’s transition strategy is not yet delivering the expected financial upside, raising doubts about its long‑term viability as a tech‑first company.

Capsules Tesla

Read full article on autocar.co.uk

The Boring Company’s newest Vegas Station has a permit quietly waiting behind…

Sahara Las Vegas opened a new Vegas Loop station on Thursday, marking The Boring Company’s northernmost Strip stop. Located at the Paradise Road entrance, it connects to the Convention Center and other resorts. Sahara becomes the second resort with a street-level station and joins Westgate as the only properties offering both Loop and Monrail access. Crucially, The Boring Company secured its first permit to tunnel north of Sahara Avenue, extending the network beyond its current limit. Crews are constructing a two-mile dual tunnel line from Westgate to a planned station near Tropicana Avenue, targeting a November opening for the Las Vegas Grand Prix. The system has transported over 4 million passengers since 2021, moving 82,000 during CONEXPO. While airport connector tunnels remain under construction past their initial target, the new station aims to boost convention traffic and room bookings at the Strip’s north end.

💡 Securing the first permit to tunnel north of Sahara Avenue proves The Boring Company can expand beyond its current infrastructure limits. This regulatory breakthrough validates the network's growth strategy, allowing expansion toward downtown Las Vegas despite pending permits for that specific route.

themirror.com · Aug 6

Elon Musk ‘humiliated’ after Donald Trump makes thoughts on EVs known

Former President Donald Trump publicly criticized electric vehicles and Elon Musk during a Las Vegas rally, declaring he had "ended the electric mandate." Trump mocked EV owners for range anxiety, labeling their concerns a "disease," and claimed gasoline remains the preferred fuel source. He asserted that EVs constitute only 7% of US vehicles, dismissing the mandate’s 2030 timeline as impractical due to charging infrastructure limitations. Despite previously close ties with Musk, Trump highlighted his opposition to federal EV requirements, emphasizing America’s abundant oil and gas reserves. The remarks drew attention to the shifting political stance on green energy policies. Data indicates EV ownership is concentrated among higher-income households and younger demographics, with Tesla remaining the global market leader. Trump’s comments underscore a significant policy reversal regarding automotive emissions standards and renewable energy transitions in the United States.

💡 The administration's explicit rejection of federal EV mandates signals a potential rollback of climate regulations that have driven industry innovation for years. This policy shift creates immediate uncertainty for automakers investing heavily in electric infrastructure and consumer adoption strategies.

teslarati.com · Aug 6

Tesla’s mysterious Robovan makes a sneak peek with Optimus in Terafab video

Elon Musk shared a new concept render of Terafab on X, featuring Tesla’s Robovan and Optimus robots. The video depicts the driverless Robovan, unveiled in October 2024, traveling on an elevated roadway within the massive facility planned for Grimes County, Texas. It shares the frame with a Tesla Semi and Cybercab, while Optimus robots work the grounds. This marks one of the few recent visual updates for the Robovan, which lacks a confirmed production timeline. Meanwhile, Optimus production is advancing, with Tesla converting Fremont’s Model S/X line for Gen 3 units and building a larger plant at Giga Texas targeting summer 2027 volume production. Musk described Terafab as the largest and most valuable building on Earth. The post coincided with Texas Governor Greg Abbott’s confirmation of the project and reports that SpaceX has paid Grimes County $10 million under signed tax abatement agreements. Reuters cited a $16.8 billion capital expenditure figure for this construction phase. The render showcases angular architecture and illuminated bands, departing from traditional industrial designs. Musk’s post quickly garnered over 5.5 million views, sparking mixed reactions ranging from enthusiasm to skepticism about the ambitious timeline and scale of the joint Tesla-SpaceX-xAI venture.

💡 The release validates Terafab’s transition from concept to active construction with confirmed financial commitments. It simultaneously reinforces Musk’s strategy to integrate autonomous transport and humanoid robotics into a single, massive industrial ecosystem.

teslarati.com · Aug 6

Tesla Cybertruck production snaps back after ugly supplier fight

Tesla’s Cybertruck production at Giga Texas is recovering following a legal dispute with supplier Angstrom Automotive Group. Aerial observations on Wednesday revealed approximately 100 Cybertrucks in the outbound lot, a significant increase from recent weeks. This surge occurred one day after a U.S. District Judge granted Tesla a temporary restraining order against Angstrom. The lawsuit stemmed from Angstrom’s refusal to return Tesla’s manufacturing tooling housed at its Troy, Texas facility. Tesla alleges Angstrom withheld 700 finished parts and demanded an additional $250,000 weekly to continue operations, effectively holding the equipment for ransom. The court order allows Tesla immediate entry to retrieve its property. While outbound lot counts are imperfect production metrics, the rapid rebound suggests the supplier conflict was the primary bottleneck. Cybertruck output has fluctuated throughout the year due to supply chain issues and the introduction of new trims, including the high-demand Dual Motor AWD version.

💡 The swift production rebound confirms that the Angstrom dispute, not manufacturing capability, was the critical constraint on Cybertruck output. This legal victory restores Tesla’s control over essential tooling, stabilizing supply chains for its most controversial vehicle model.

tekedia.com · Aug 6

SpaceX Nearly Doubles Tesla Megapack Purchases As AI Data Center Expansion Accelerates

SpaceX significantly increased its procurement of Tesla Megapack battery storage systems during the second quarter, spending $295 million on the units. This expenditure brings the company’s total purchases for the first half of the year to $329 million, a sharp rise from the $34 million spent in the previous quarter. The accelerated buying spree underscores the deepening integration of Elon Musk’s business empire, particularly following SpaceX’s acquisition of xAI earlier this year. These energy storage systems are expected to support the power demands of AI data centers operated by the merged entities. The transaction highlights how Tesla’s energy division is becoming a critical supplier within Musk’s interconnected corporate ecosystem. Additionally, SpaceX has purchased $131 million worth of Tesla Cybertrucks, further demonstrating the reliance on Tesla products across Musk’s ventures. This trend reflects the growing strategic importance of reliable energy infrastructure for sustaining rapid AI computing expansion.

💡 The surge in internal procurement validates Tesla’s energy storage division as a vital revenue pillar beyond automotive sales. It demonstrates how Musk’s vertically integrated ecosystem leverages proprietary hardware to solve the critical power constraints facing modern artificial intelligence infrastructure.

autocar.co.uk · Aug 5

Cheap cars hit Tesla profits as tech pivot stalls

Tesla reported a steep decline in Q2 operating profit, with the margin falling to 1.4% from 4.1% a year earlier despite a 10% increase in deliveries to 451,758 vehicles. The average selling price of its cars dropped, eroding returns on the core lineup and undermining the company’s announced shift toward an AI‑driven tech focus. The company’s earnings slip signals that the transition from automotive to technology giant is facing significant financial hurdles.

💡 The loss of margin highlights the difficulty of scaling a high‑volume, low‑margin business while pivoting to new revenue streams, a challenge that could reshape investor expectations for Tesla’s future strategy.