Tesla reported a 9 per cent decline in first-quarter revenue and a continued erosion of its profit margins amid a sharp fall in the sale of its vehicles.
In a filing on Tuesday, the electric-car maker said revenue fell to $21.3 billion from $23.3 billion in the same period last year, missing analysts’ expectations for $22.3 billion. That marks the first year-on-year quarterly drop since the start of 2020. Tesla shares were 6 per cent higher in after-hours trading.
The disappointing earnings come at a turbulent time for chief executive Elon Musk. Tesla shares had plunged more than 40 per cent since the start of the year after warning of slowing vehicle deliveries, a potential move of its incorporation to Texas from Delaware and revealing plans to cut more than 10 per cent of its workforce — at least 14,000 jobs.
Earlier this month, Tesla said that it had delivered 386,810 electric cars between January and March, a fifth lower than the previous quarter, and 8 per cent below the same period in 2023. It has continued to cut prices for its most popular models as excess inventory piles up.
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The company also pledged to “accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025″, including more “more affordable” cars. --Copyright The Financial Times Limited 2024
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