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Teslaprofits lessen 55 % to $ 1.13 billion in the first quarter from the same yr - agone period as a protracted EV price - cutting strategy and “ severalunforeseenchallenges”cut into the automaker ’s bottom line .
Tesla describe revenue of$21.3 billionin the first quarter , a 9 % drop from the first one-fourth of 2023.Analysts poll by Yahoo Finance expected earnings of $ 0.51 per share on $ 22.15 billion in revenue . Tesla reported operating income of $ 1.2 billion in the first quarter , a 54 % decrease from the same year - ago period .
The company say in itsQ1 pay reportthat it experience “ legion challenge ” in the first stern , including the Red Sea battle and the arson attack at Gigafactory Berlin and the gradual ramp of the update Model 3 at its factory in Fremont , California . Tesla also noted that global EV sales cover to be under insistency as many carmakers prioritize crossbreed over EVs . On the upside , that hybrid approach has meant auto maker stay on to grease one’s palms regulatory credits ; Tesla earned $ 442 million in zero emission tax credit in the first quarter .
“ The EV adoption rate globally is under pressure level and a lot of other auto manufacturers are pulling back on EVs and pursue plug in hybrids alternatively , ” Tesla CEO Elon Musk said in scuttle remarks on the earnings call . “ We consider this is not the right strategy , and galvanic fomite will ultimately dominate the mart . ”
Shares pop on future promises
The results , posted after markets closed Tuesday , sent shares up as much as 12%following the waiver as investors appeared to be more focussed on Tesla ’s forward - looking remarks about future products , including an upended ware roadmap to bringmultiple cheaper vehiclesto grocery store by 2025 .
Despite the down trend in net , Tesla used the first - after part write up to focus on the future , namely about using AI to make advances in autonomy and the introduction of new products , include those build up on a next - generation vehicle weapons platform . The society spend $ 1.1 billion on research and growing in the first quarter , a 49 % addition from the same quarter in 2023 .
Musk emphasized that despite the downward pressure , the companionship was focused on — and investing in — the future . Specifically , the company is accelerating work on a new fomite lineup with product anticipate in other 2025 , if not late this class , Musk enounce .
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“ These unexampled vehicle , include more low-priced models , will use face of the next - generation platform as well as aspect of our current chopine , ” he sound out . “ And we ’ll be able to grow on the same fabrication lines as our current vehicle lineup . ”
The cost of price cuts
Tesla has seen EV sales maturate over the past several years , topping out to a novel record of1.8 million vehiclesin 2023 . But the company ’s profits have suffered thanks to repeat price cuts that started in belated 2022 .
While those cost excision did provide a temporary bump in sales , it has n’t had a durable issue . Tesla delivered386,810 vehiclesin the first quarter of 2024 , down 20 % from the 484,507 it delivered in the final tail of 2023 . This was n’t just a after part - over - quarter blip either ; Tesla delivered 8.5 % fewer cars than the first quarter of 2023 . Automotive unadulterated leeway , boot out regulative credit , shrank to 16.35 % in the first quarter compared to 18.96 % in the same year - agone period of time .
Tesla warned in January that growth of its vehicle sales “ may be notably lower ” in 2024 , noting at that clip it was between “ two major ontogenesis undulation ” and prepping for the launching of a new fomite political platform to ramp up a smaller EV that cost around $ 25,000.The company has also been prepping a “ robotaxi”built on the same platform . In the meanwhile , Tesla ’s only new model is theexpensive ( and fussy ) Cybertruck ; the company has launched new variants on existing model , include theTesla Model 3 Performance .
Musk sound out during the caller ’s salary call in January the smaller and cheaper EV would go into production in former 2025 at the company ’s factory in Texas and finally amplify to a yet - to - be - built mill in Mexico .
Three month subsequently , Musk appears to have change the troupe ’s low - toll EV playbook . Musk reportedly replaced the plan for a humiliated - toll EV intention - built on the Modern chopine . Instead , he now wants to plow headfirst into the robotaxi , which will be revealed in some capacity in August , while also launching “ Modern good example ” that somehow expend what ’s being developed for that new platform .
Less than two workweek after announcing the robotaxi launching date , Musk oversaw a 10 % reduction in headcountand a restructuring that puts autonomy in abrupt focus . Two mellow - profile executives — Drew Baglino , Tesla ’s SVP of Powertrain and Energy , and Rohan Patel , VP of Public Policy and Business Development — also left the ship’s company . Tesla CFO Vaibhav Taneja said Tuesday during the earnings call that thesavingsgeneratedfrom the workforce reduction isexpectedtobewellinexcessof$1billiononanannualbasis .
Other revenue sources
While self-propelling tax income fall , there were gains in other contribution of the business , notably energy storage .
The company reported that vitality storage deployment increase to a book 4.1 GWh . That pushed revenue for vigor generation ( have in mind solar ) and storage to 1.6 billion in the first quarter , a 7 % increase from the same stern last year . Tesla noted that most of that growth came from increase Megapack deployment , which was partially set off by a decrease in solar installs .
The company also report $ 2.28 billion in revenue from services , include capital generated from its Supercharger electronic web . That revenue source should increase as more car maker , include Ford , GM , Rivian and VWadopt Tesla ’s technologyknown as North American Charging Standard .
Tesla Semi delayed
While Tesla push forrard on autonomy and a new product roadmap , other labor bear on to be delayed . Mass product of the Tesla Semi , which was firstrevealed in November 2017 , is now being pushed out another class .
The Tesla Semi , which was primitively planned to go into production in 2019 , has been repeatedly delayed . The company did bring out a production - ready Semi in December 2022 and delivered a handful to Pepsi , its first customer , for a cowcatcher . But it has yet to scale up volume production .
Last June , Musk say the company would n’t begin bring forth the Class 8 big rigging until theend of 2024 . The first yield Semi vehicle are now plan for late 2025 with external customer starting in 2026 , according to Tesla .
Tesla is finalizing the engineering for the Semi to allow for “ super toll effective gamey output , ” according to information shared on the call . The society share in its first - one-fourth net profit account that it has started building of a Tesla Semi factory near its so - called Gigafactory in Sparks , Nevada .
