(TheLastPatriotNews.com) – Electric vehicles producer Tesla reported a 9% decrease in revenue for the first quarter, marking its most significant drop since 2012, and fell short of analysts’ expectations as it navigates the impacts of ongoing price reductions.
Despite this, the company’s stock surged in extended trading following a statement from CEO Elon Musk during an investor call, where he indicated that the production of new, more affordable electric vehicle (EV) models might commence sooner than previously anticipated, CNBC reports.
The company’s performance, when compared with Wall Street forecasts based on a survey by LSEG, showed a revenue fall from $23.33 billion the previous year to $25.17 billion in the last quarter.
Net income plummeted by 55% to $1.13 billion, or 34 cents per share, down from $2.51 billion, or 73 cents per share, a year earlier.
This sales decline surpassed Tesla’s last significant drop in 2020, which occurred due to production disruptions caused by the COVID-19 pandemic. Specifically, car revenue fell 13% year-over-year to $17.38 billion in the initial three months of 2024.
“We think Q2 will be a lot better,” Musk announced on the call.
He outlined plans to initiate production of new models “early 2025, if not late this year,” a revision from the previously anticipated second half of 2025.
He also highlighted Tesla’s investments in artificial intelligence and ongoing discussions with “one major automaker” about licensing its Full Self-Driving (FSD) system, available in the U.S.
Tesla’s shareholder presentation conveyed a cautious outlook for 2024, suggesting that the “volume growth rate may be notably lower than the growth rate achieved in 2023.”
Before the post-earnings announcement surge, Tesla’s shares had declined over 40% this year, touching their lowest point since January 2023 due to concerns about weak vehicle deliveries, increased competition in China, and persistent price cuts.
Tesla also reported an 8.5% year-over-year drop in vehicle deliveries for the first quarter earlier in the month.
The presentation further mentioned that Tesla is expediting the introduction of “new vehicles, including more affordable models,” which can be manufactured on the same lines as the current models.
The company aims to “fully utilize” its existing production capacity and achieve “more than 50% growth over 2023 production” before committing to new manufacturing investments.
Additionally, the presentation showcased a robotaxi-based ride-hailing service, although Tesla has yet to fulfill Musk’s longstanding promise of a fully self-driving vehicle.
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