Tesla reported a decline in sales
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Tesla announced the launch of new models, pleasing investors despite a slump in sales. Tesla boss Elon Musk said on Tuesday that production, originally planned for the second half of 2025, could be brought up to early 2025 or late 2024. “This update will result in a smaller cost reduction than originally anticipated,” the company said. Tesla shares rose eleven percent after trading.
Sales in the first quarter were 21.3 billion dollars (approximately 19.9 billion euros) after 23.33 billion in the same quarter of the previous year. Analysts had expected 22.15 billion. Net profit stood at $1.13 billion at the end of March, up from $2.51 billion a year ago. The eagerly anticipated gross margin fell to 17.4 percent. However, according to data from Visible Alpha, analysts were expecting only 15.2 percent, compared with 19 percent in the same period last year.
Tesla has provided little information about its planned new cars. This includes “more affordable models,” it said. They should be manufactured using existing equipment and follow the features of current models. Price not specified. CEO Elon Musk said in January that production of the more cost-effective model should begin in Texas by mid-2025. Investors expected the vehicle, commonly known as the Model 2, to cost $25,000. Reuters news agency reported on April 5 that Tesla had abandoned such plans. Musk talked about a hoax on his messaging service, X.
According to additional information from Reuters, Robotaxis will be built on a small car platform. It said on Tuesday, without specifying a date, that a “customized robotaxi product” made using the revolutionary manufacturing process will be developed. After General Motors subsidiary Cruise stopped operating its self-driving service due to technical issues, some experts consider robotaxis an unrealistic prospect. Others believe it will be the next big thing and could bring huge profits.
The global market for electric cars is currently in decline. Tesla said many automakers are focusing on hybrids. In addition, competition has increased, with emerging electric cars from established manufacturers such as Chinese supplier BYD and VW, for example. Tesla is trying to counter this by lowering prices. The price war launched by the US group in 2023 has been reducing profits for a long time. Tesla is also responding by cutting staff. More than ten percent of the 140,000 jobs worldwide are expected to be lost. In Germany, Tesla plans to cut about 400 jobs at its Grünheide plant through a voluntary plan.
