Tesla’s first-quarter earnings report has sparked concern among investors, with the company posting a 71% drop in net profit compared to the same period last year. The electric vehicle giant reported a net profit of $409 million on revenue of $19.3 billion.
Sales have slumped, with Tesla delivering just 337,000 vehicles – its lowest quarterly total in over two years. This marks the first time the company has seen a year-over-year decline in deliveries.
Challenges Facing Tesla
Several factors have contributed to Tesla’s disappointing performance. Sales have been slow, and CEO Elon Musk has faced backlash over his political views and involvement with former US President Donald Trump’s government. The company’s products are also showing signs of aging, and there’s been a shift in focus towards projects like Robotaxi and the Optimus robot. Trade wars and political changes have further impacted demand, particularly in the energy sector.
A Glimmer of Hope
Despite the negative news, Tesla’s stock price rose in after-hours trading. Investors are looking forward to the company’s plans to produce more affordable electric vehicles, which are expected to start rolling out in June 2025. These new models will use the same platform as the Model Y and Model 3, with Musk committing to focus more on Tesla.
Tesla faces significant challenges ahead, including developing fully autonomous driving technology and competing in a rapidly growing electric vehicle market.