Tesla shares fell in after-hours trading after the electric vehicle company reported a revenue drop to its lowest level since 2012. The Austin, Texas-based company blamed the revenue miss on a series of challenges, including supply chain disruptions, an arson attack at its Fremont factory, rising production costs, and waning consumer demand for electric vehicles. Tesla’s revenue came in at $21.3 billion for the first quarter, missing Wall Street’s expectations of $22.15 billion. Earnings per share were $0.45 cents, also below the consensus estimate of $0.51 cents a share. Despite the challenges, Tesla CEO Elon Musk remains optimistic about the company’s future. In a statement, Tesla said it has updated its future vehicle lineup to accelerate the launch of new models ahead of schedule. Musk told investors during an earnings call that the company expects to launch new models in early 2025, if not later this year. He also said Tesla plans to make the new vehicles more affordable, with production not contingent on any new factory or massive production line. Musk noted that the company can produce the new vehicles more efficiently on its current production lines. Tesla’s move to produce more budget-friendly EVs may be in response to declining consumer demand for higher-priced electric vehicles. The company said global EV sales are under pressure as many carmakers prioritize hybrids over EVs. Despite the challenges, Tesla continues to invest in its future. Musk recently announced on Twitter that the company’s Optimus humanoid robot is “almost ready for production.” Tesla also said it plans to continue investing in its AI training infrastructure, charging networks, and new EV fleets. During the earnings call, Musk hinted that the company plans to showcase its robotaxi in August. The cybercab is expected to operate for nearly 50 hours before needing to charge, he said. Tesla’s chief financial officer, Vaibhav Taneja, told investors that the company’s recent layoffs are expected to generate savings of more than $1 billion annually. He compared the reduction to pruning a tree, saying it will make Tesla stronger and more resilient to deal with the future.
Tesla Faces Challenges, but Plans to Accelerate New Model Launch
