Tesla, the electric vehicle giant, has experienced a significant downturn in its financial performance, as revealed in its latest quarterly disclosures. The company’s profits have taken a massive 55% plunge compared to the same period last year, with revenues also declining by 9% to $21.3 billion. This represents the largest revenue decline for Tesla since 2012. The recent sales figures further highlight Tesla’s challenges, with a reported 8.5% drop in sales for the first quarter of 2024, surpassing the decline witnessed during the Covid-19 pandemic in 2020. Additionally, the company has announced a major recall of its recently sold Cybertruck vehicles, affecting nearly 4,000 units due to acceleration pedal issues. To address these challenges, Tesla CEO Elon Musk has initiated plans for layoffs, estimating a reduction of 10% in the company’s workforce, which translates to approximately 14,000 employees. Mr. Musk has characterized this move as a necessary step to enhance efficiency, innovation, and competitiveness in preparation for the company’s next phase of growth.
Tesla’s Profits Nosedive by 55%, Revenues Take a Hit
