Tesla wants to bring cheaper electric cars to the market faster than previously communicated. The American group of CEO Elon Musk hopes to boost its sales, which have fallen into the doldrums, in this way.
Tesla now plans to start producing a new electric car before the middle of next year. The company had previously told suppliers that the more affordable model, which is being developed under the codename Redwood, would go into production in the second half of next year.
Tesla has been struggling with disappointing sales for some time, partly due to fierce competition in China. That is why Musk recently announced a round of layoffs that will eliminate more than 10 percent of the more than 140,000 jobs worldwide.
Tesla is sticking to its short-term growth expectations for the time being. “In 2024, our vehicle volume growth may be significantly lower than the 2023 growth rate as our teams work to launch next-generation vehicles and other products,” the company said in its quarterly earnings call.
Bad quarter
Meanwhile, Tesla announced that it posted its first sales decline in almost four years last quarter. Turnover fell by 9 percent year on year to 21.3 billion dollars (19.9 billion euros). Analysts had expected an average turnover of 22.15 billion. Earnings per share were also lower than expectations. Net profit fell by 55 percent to 1.13 billion dollars (1.06 billion euros).
Elon Musk’s company failed to meet expectations in the first quarter, with approximately 387,000 vehicles delivered. This is 8.5 percent less than in the same period last year and 20 percent less than in the fourth quarter of 2023. Tesla points out, among other things, that the factory in Grünheide, Germany, near Berlin, was temporarily closed in the first quarter. was shut down due to sabotage of power supplies.
Tesla did not provide a concrete forecast for the number of cars delivered for the current year, but the company expects a significant decrease compared to last year. Tesla shares lost more than 7 percent after hours. Since the beginning of the year, the price has already fallen by more than 40 percent.
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Tags: Tesla bring cheaper electric cars market earlier reports drop sales
