Tesla reports biggest revenue slide since 2012, announces renewed push for affordable model
Elon Musk, CEO of Tesla and owner of social media site X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, on June 16, 2023.
Tesla reported a 9% drop in first-quarter revenue on Tuesday, the biggest decline since 2012, and missed analysts' estimates, as the electric vehicle company weathers the effect of ongoing price cuts.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Revenue declined from $23.33 billion a year earlier and from $25.17 billion in the fourth quarter. Net income dropped 55% to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, a year ago.
The drop in sales was even steeper than the company's last decline in 2020, which was due to disrupted production during the Covid-19 pandemic. Tesla's automotive revenue declined 13% year over year to $17.38 billion in the first three months of 2024.
Tesla CEO Elon Musk said on the call that the company plans to start production of new models in "early 2025, if not late this year," after previously expecting to start production in the second half of 2025.
