Tesla, the American electric vehicle manufacturer, experienced its first sales decline in almost four years during the last quarter. The company’s turnover decreased by 9 percent year on year to $21.3 billion, falling short of analysts’ expectations. Earnings per share also missed estimates, with net profit declining by 55 percent to $1.13 billion.
In the first quarter, Tesla delivered approximately 387,000 vehicles, which is a significant decrease of 8.5 percent compared to the same period last year. The company attributed some of the decline to a temporary closure of its factory in Grünheide, Germany, near Berlin due to sabotage of power supplies. Despite this setback, Tesla did not provide a specific forecast for car deliveries for the year but expects a significant decrease from the previous year.
To boost sales and remain competitive in the market, Tesla announced plans to bring more affordable electric cars to market sooner than previously planned. The company aims to start production of a new electric car before the middle of next year, moving up from its previous second half of the year timeline.
Tesla has faced challenges in sales, particularly in China’s competitive market. In response to these challenges, Elon Musk announced a round of layoffs that would reduce Tesla’s global workforce by more than 10 percent. However, despite these setbacks and challenges, Tesla continues to push forward with innovations and new product launches to stay competitive in the electric vehicle market.
After-hours trading saw Tesla shares drop more than 7 percent following news of the sales decline and layoffs announcement. This decline added to an already substantial loss of over 40 percent since the beginning of the year.
In conclusion, while Tesla has faced several challenges in recent months regarding sales and manufacturing operations globally, it remains committed to staying at the forefront of innovation and pushing forward with new product launches and initiatives that will enable it to remain competitive in one of the fastest-growing markets globally: electric vehicles.