In the first quarter of this year, Tesla experienced a decline in revenues for the first time since 2020. This decrease was attributed to a drop in sales of electric vehicles due to a slowdown in demand and increased competition in the global market. Despite this, the company reported revenue of $21.3 billion, which was slightly lower than the $23.33 billion from the previous year. Profit also decreased by 55% to $1.1 billion compared to the same quarter last year.
To combat these challenges, Tesla is focusing on company-wide cost reduction in order to achieve profitable growth. The company’s announcement of launching new models helped boost their stock prices after hours. However, analysts are wary as Tesla has not provided a timeline for these new vehicles, which could take years to come to market amidst intensifying competition in the electric vehicle market.
Tesla also reiterated its commitment to developing revolutionary electric vehicle manufacturing technologies like robotaxis. With Elon Musk at the helm, analysts predict a tough year ahead in 2024 as competition in the electric vehicle market increases, leading to potential price wars. Regardless, Tesla is determined to stay at the forefront of innovation in the industry.