Tesla shares rallied overnight, reversing earlier losses of over 4%. Tesla's chairman stated that media reports about the board contacting headhunter firms to find a new CEO are "completely false."

Tesla shares rallied overnight, reversing earlier losses of over 4%. Tesla's chairman stated that media reports about the board contacting headhunter firms to find a new CEO are "completely false."

Tesla shares rebounded overnight, reversing earlier losses of over 4% after the company reported a second consecutive drop in quarterly profits. The electric vehicle maker, led by Elon Musk, reported profits falling by 45% in the second quarter of the year to $1.5bn (£1.2bn), despite revenues rising slightly to $25.5bn [1]. Tesla's chairman, Elon Musk, has been in the spotlight recently, with reports suggesting that the board is considering replacing him as CEO. However, Musk has dismissed these rumors, stating that media reports about the board contacting headhunter firms to find a new CEO are "completely false" [1].

The company's shares dropped 4% initially after the results, but they have since recovered some of their losses. Tesla has been facing challenges in maintaining sales of its vehicles amid a wider slump in electric car demand. In response, the company has reduced prices and resorted to cheap financing to boost demand [1].

Musk has been investing heavily in artificial intelligence, touting improvements in the company's self-driving software and promising that Tesla's "Optimus" humanoid robots will be a feature in its factories as soon as next year. The company has also been working on a fully autonomous "robotaxi," which was initially scheduled to be unveiled in August but has been delayed due to design changes [1].

Despite the challenges, investors have warmed to the company in recent weeks, with Musk promising to speed up the development of a new lower-cost vehicle. The company's energy business has been booming, with revenues from energy generation and storage doubling to $3bn [1].

Meanwhile, Alphabet, Google's parent company, reported record profits amid continuing strength in its dominant digital advertising business. Alphabet recorded a $23.6bn profit, up 29%, with quarterly revenues rising 14% to $85bn [1]. The company's shares jumped 2% in after-hours trading following the results.

References:
[1] https://www.telegraph.co.uk/business/2024/07/23/ftse-100-latest-news-pound-surge-forecast-amundi-europe/