Tesla reported its first sales decline in almost four years in the past quarter, with turnover falling by 9 percent year on year to $21.3 billion. This was below analysts’ expectations, who had forecasted an average turnover of $22.15 billion. Earnings per share were also lower than expected, with net profit falling by 55 percent to $1.13 billion.
The company failed to meet expectations for the first quarter, delivering approximately 387,000 vehicles, which was 8.5 percent less than the same period last year. Tesla pointed out that the factory in Grünheide, Germany, near Berlin, was temporarily closed in the first quarter due to sabotage of power supplies. Despite not providing a concrete forecast for car deliveries for the current year, Tesla expects a significant decrease compared to last year.
Tesla shares dropped more than 7 percent after hours, with the price falling by over 40 percent since the beginning of the year. The company announced plans to bring cheaper electric cars to the market faster than previously communicated, with production of a new electric car expected to start before the middle of next year.
The company has been facing disappointing sales due to competition in China, leading to announcements of layoffs to eliminate more than 10 percent of the 140,000 jobs worldwide. Despite these challenges, Tesla remains focused on expanding its product offerings and improving its sales performance in the coming quarters.