KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Tesla’s Q2 results show the electric vehicle (EV) giant is navigating a tough patch. Net income dropped 16% to $1.17 billion, and revenue fell 12% to $22.5 billion—a clear sign of weakening demand and a shrinking profit base.
The core issue? Automotive deliveries fell 13.5% year-over-year, and automotive revenue dropped 16%. Tesla’s energy business also dipped 7%.
Why the drop?
Lower vehicle sales, especially in key markets.
Shrinking regulatory credits: Tesla earned just $439M in carbon credit revenue—less than half of last year’s level.
EV tax credit changes and tougher competition are taking a toll.
Public image issues, particularly in politically sensitive regions, are dragging down brand sentiment.
Musk’s Response:
On the earnings call, Elon Musk acknowledged the bumpy ride ahead, saying Tesla “could have a few rough quarters,” but remains optimistic long-term—especially around autonomy.
Key Growth Bets:
A lower-cost Model Y is on the way.
Robotaxi expansion: Tesla has started testing its self-driving ride-hailing service in Austin, TX ($6.90 per ride) and aims to expand to half the U.S. by year-end.
Further rollout planned for Bay Area, Nevada, and Florida.
Outlook:
Tesla is doubling down on future bets like autonomous vehicles and robotics, while the near-term headwinds—tax credit cuts, EV demand softness, and brand perception—continue to weigh.
Investor Takeaway:
Tesla’s near-term fundamentals are under pressure, but long-term upside hinges on execution in autonomy. For growth investors, the robotaxi strategy could be the next major revenue stream—but the path won’t be smooth. Consider this a high-risk, high-reward play with patience required.
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