Tesla, the renowned electric vehicle manufacturer, has reported a substantial decline in its first-quarter profits of 2024. The company’s net profit fell by 55% to $1.13 billion, a significant drop from the $2.51 billion reported in the same period last year. Tesla’s revenue also experienced a contraction, decreasing by 9% to $21.3 billion, a departure from the $23.33 billion recorded in the first quarter of 2023. This downturn reflects the increasingly competitive nature of the electric vehicle market, which has put pressure on EV sales. However, despite these setbacks, Tesla’s share price experienced a surge of over 13% in after-hours trading. This positive market reaction stems from the company’s announcement that it will accelerate the development of new, more affordable electric vehicles. Tesla plans to expedite the launch of these models, moving the start of production to early 2025 or late 2024, ahead of the previously communicated timeframe of the second half of 2025. Additionally, Tesla has implemented cost-cutting measures, including a reduction in its global workforce by more than 10%. This move is projected to save the company over $1 billion annually. Tesla has also slashed vehicle prices in major markets, such as the United States, China, and Europe. These strategic decisions aim to enhance the company’s competitiveness and position it for continued growth in the burgeoning electric vehicle market.
Tesla’s Profits Plunge, Revenue Dips, But Shares Soar Amidst EV Expansion Plans
