Tesla takes hit as Elon Musk says shift towards affordable models ...

Shares in Tesla have taken a hit after the electric vehicle maker published a 45% decline in quarterly profits and warned cost reduction targets were off track.

The stock fell 8% in after-hours trade, leaving it on track for a decline of almost 50% in the year to date, following the release of its second quarter earnings.

Chief executive Elon Musk, who cut 10% of the company's workforce at the end of April as part of a bid to reduce pressure on its bottom line, said its promised shift towards more affordable models was on track for early 2025 but proving more expensive than expected.

The cost of AI projects, including plans to produce and use humanoid robots, dragged too.

Net profits for the April-June quarter came in at $1.48bn - down on the $2.7bn figure achieved in the same period last year.

Tesla's profit margin was at its lowest level for five years.

The surge of spending on restructuring and development has coincided with a series of price cuts to help drive sales.

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The company's electric vehicle deliveries have fallen for two consecutive quarters.

Tesla is battling rising competition from Chinese producers, who are selling at a considerable discount, and slow demand stemming from a lack of affordable new models.

Dan Coatsworth, investment analyst at AJ Bell, said Tesla had now missed earnings targets for four quarters in a row.

"There is a lot of talk about robotaxis, humanoid robots and autonomous driving, which provides an exciting narrative for investors but doesn't get over the fact that these are tomorrow's potential riches, not today's."

Thomas Monteiro, senior analyst at Investing.com, added: "Perhaps more than ever in the company's recent history,Tesla's investors need results; those will have to come fast - both for the humanoid robot and for the Robotaxi."

The release date for the Robotaxi project in Europe and China has been pushed back to October from August.

Tesla said on Tuesday that the "timing of Robotaxi deployment depends on technological advancement and regulatory approval".

Musk said during a conference call with investors: "I don't think regulatory approval will be a limiting factor."