Tesla’s revenues fell in the first quarter for the first since 2020, the year of Covid. What had an impact was the decline in sales of electric vehicles due to the slowdown in demand and strong global competition. Revenue stood at $21.3 billion for the three months ended in March, up from $23.33 billion a year earlier. Analysts had estimated an average of $22.15 billion. Profit totaled $1.1 billion, down 55% from the same quarter a year earlier.
Tesla is committed to “company-wide cost reduction” as part of an effort to achieve “profitable growth,” the company said. The acceleration of the “launch of new models” drove the stock higher in the after-hours. While the announcement of the new vehicles sent the stock soaring, “the company has not yet offered a timeline for these new vehicles, which could take years to come to market at a time when competition of electric vehicles in various markets is intensifying,” said Gadjo Sevilla, senior technology analyst at Emarketer. Tesla also reiterated its intention to pursue “revolutionary” electric vehicle manufacturing robotaxi. In any case, analysts expect a difficult 2024 with Musk’s leadership in electric vehicles facing increased competition from rivals, resulting in lower prices.
