Tesla posted its first sales decline in almost four years in the past quarter. Turnover fell by 9 percent year on year to 21.3 billion dollars (19.9 billion euros), the American electric car manufacturer reported after trading hours on Tuesday.
Analysts had expected an average turnover of 22.15 billion. Earnings per share were also lower than expectations. Net profit fell by 55 percent to 1.13 billion dollars (1.06 billion euros).
Elon Musk’s company failed to meet expectations in the first quarter, with approximately 387,000 vehicles delivered. This is 8.5 percent less than in the same period last year and 20 percent less than in the fourth quarter of 2023. Tesla points out, among other things, that the factory in Grünheide, Germany, near Berlin, was temporarily closed in the first quarter. was shut down due to sabotage of power supplies.
Tesla did not provide a concrete forecast for the number of cars delivered for the current year, but the company expects a significant decrease compared to last year. Tesla shares lost more than 7 percent after hours. Since the beginning of the year, the price has already fallen by more than 40 percent.
Faster cheaper cars
Tesla announced that it will bring cheaper electric cars to the market faster than previously communicated. The company now plans to start production of a new electric car before the middle of next year. The company had previously told suppliers that the more affordable model, which is being developed under the codename Redwood, would go into production in the second half of next year.
Tesla has been struggling with disappointing sales for some time, partly due to fierce competition in China. That is why Musk recently announced a round of layoffs that will eliminate more than 10 percent of the more than 140,000 jobs worldwide.