Tesla, the renowned electric vehicle (EV) manufacturer, has faced a 9 percent year-over-year decline in revenue for the first quarter of 2024. This significant drop marks Tesla’s largest revenue decline since 2012 and comes amidst declining sales and growing competition within the EV market. In an effort to address these challenges, Tesla has taken several strategic steps. The company recently slashed the prices of three of its best-selling models, including the Model X, Model Y, and Model S, by $2,000 each. This move came just weeks after Tesla reported a notable dip in first-quarter sales. The decline in sales extended to vehicle deliveries, which decreased by 8.5 percent compared to the same period last year, falling from 423,000 in Q1 2023 to 386,810 in Q1 2024. Tesla attributes the decline in sales and revenue to a combination of factors, including shipping difficulties in the Red Sea, an arson attack on a German factory, and the ramp-up of production for its updated Model 3 at a California facility. To further address these challenges, Tesla announced plans last week to cut 10 percent of its workforce, which equates to approximately 14,000 employees. CEO Elon Musk has stated that this decision will ‘enable us to be lean, innovative, and hungry for the next growth phase cycle.’ Tesla’s stock price has been on a downward trend since the start of the year, experiencing a decline of over 40 percent. However, following the announcement of plans to accelerate the production timeline for new vehicles, including more affordable models, Tesla’s stock witnessed a positive surge in after-hours trading on Tuesday, indicating optimism among investors.
Tesla Experiences Revenue Decline, Slashes Prices, and Cuts Workforce
