Tesla Accelerates New Model Launches, Shares Rise 6%
Tesla has accelerated the launch of its new models, sending its shares up 6% in trading after the bell on Tuesday. The company stated in a filing that they have updated their future vehicle line-up to expedite the introduction of new models ahead of the previously communicated production start in the second half of 2025.
While this adjustment may result in lower cost reduction than anticipated, it enables Tesla to cautiously expand vehicle volumes efficiently in uncertain times. The global demand for electric vehicles has eased, with sales growing at slower-than-expected rates due to reduced government subsidies and higher interest rates.
Revenue Declines in First Quarter
Despite the accelerated new model launches, the Elon Musk-led firm reported a revenue decline in the first quarter. Tesla delivered fewer electric vehicles to customers due to slowing demand and intense competition globally. Revenue for the three months ended March stood at $21.3 billion, down from $23.33 billion a year earlier, falling short of analysts’ estimates of $22.15 billion.
This marks the second quarterly revenue decline for Tesla since the COVID-19 pandemic in 2020, which hampered production and deliveries. Net profit for the first quarter was $1.13 billion, compared to $2.51 billion a year earlier, further highlighting the challenges facing the company.
