Profits At Tesla Plummet 55% As Electric Vehicle Sales Decline

(CTN News) – On Tuesday, Tesla announced that its quarterly profits had dropped by a significant amount, pointing to the increased competition in the electric vehicle market that has led to deep cost cuts.

A report released this week by Elon Musk’s EV company showed profits of $1.1 billion, down 55 percent from the same quarter a year ago. Revenues were $21.3 billion, down nine percent from the previous quarter.

A few years ago, Tesla was enjoying scorching growth through most of 2022 and even through the early part of 2023, but the company has encountered a tougher market as more competitors have introduced their own EVs, resulting in Musk having to cut prices multiple times over the last year.

It is also worth noting that the company, which recently announced plans to lay off over 10% of its staff, has also undertaken the recall of its Cybertruck as a result of an issue affecting acceleration of the vehicle.

It is Tesla’s commitment to “reduce its costs throughout the company” as part of its efforts in order to achieve “profitable growth” that makes the company commit to “reducing its costs throughout the company.”

There was some positive news in the Tesla report despite all the belt-tightening implied in those statements. There was also a statement stating that the company planned to “accelerate the launch of new models in advance of the previously expressed start of production in the second half of 2025.”.

In addition to the current models, Tesla has stated that the new models are going to be a lot more affordable than the current models.

In the wake of the news, Tesla has been reported to be pulling back on its plans for a mass-market, lower-cost vehicle known as “Model 2,” an unofficial term for a vehicle that is expected to become a mass-produced, mass-marketed vehicle in the near future.

As a result of after-hours trading on Tuesday, Tesla shares rose by 6.0 percent, according to after-hours trading data.

SEE ALSO:

GM Raises 2024 Earnings Guidance After Strong First-Quarter Results