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Cause for alarm? Tesla profit falls 55% through March
The carmaker's revenue was $21.3 billion.
© Lusa
Auto Tesla
Tesla reported a 55% decline in first-quarter profit to $1.13 billion (€1.058 billion), the company announced.
Revenue for the electric-car maker fell 9% to $21.3 billion (€19.946 billion).
Global deliveries also declined by 9% during the period, which the company attributed to increased competition and reduced demand for electric vehicles.
Automotive revenue alone fell 13% to $17.378 billion (€16.273 billion), from $19.963 billion, a change the company attributed to price cuts in the United States.
In a note to investors, Tesla said it had also been hurt by “numerous challenges” related to the conflict in the Red Sea and a fire at its factory in Berlin.
The company also argued that the global electric-vehicle market is “contracting” as buyers prioritize hybrid vehicles.
The company said it will accelerate the launch of new models, originally planned for the second half of 2025, though it did not provide a timeline.
Tesla also said it expects vehicle-delivery growth to be “substantially below” its long-term 50% annual growth target this year.
Analysts, speaking to the Associated Press, said the forecast shortfall raises questions about demand for Teslas and other electric vehicles.
Last week, Tesla announced it would lay off about 10% of its 140,000 employees.
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