In January-March, the company made a profit of about 1.1 billion dollars, which is 55 percent less than a year earlier.
Electric car manufacturer Tesla’s profit fell significantly in January-March, but promises of more affordable cars than before boosted the value of the shares on the New York stock exchange. The company plans to release cheaper cars by the end of this year or possibly early next year, sums up the financial news office Bloomberg. Previously, Tesla had promised the cars in question for the end of 2025.
According to Bloomberg, it was not immediately clear whether Tesla’s promise of low-cost models was a reference to the long-rumored low-cost car, which has also been referred to as the Model 2. News agency AFP, on the other hand, writes about speculations that Tesla was about to shelve the car model in question. Investors still welcomed the decision to speed up the launch of cheaper models. According to Bloomberg, Tesla’s price had risen by 11 percent in the aftermarket.
Manufacturers prioritize hybrids
The company said it made a profit of about 1.1 billion dollars in January-March, which is 55 percent less than in the same period a year ago. The company’s turnover, on the other hand, had decreased by nine percent from a year ago and was now 21.3 billion dollars.
– Global sales of electric cars are still under pressure because many car manufacturers prioritize hybrids over electric cars, the company says and underlines that it prefers that the introduction of electric cars continues.
In its results announcement, the company also lists the Red Sea conflict as challenges at the beginning of the year, most probably referring to the attacks on international shipping by Yemen’s Houthi rebels, and the arson of the company’s factory in Germany.
The electricity at the German factory was cut off at the beginning of March, when the high-voltage wires leading to the factory were set on fire. The far-left Vulkangruppe activist group announced that it was behind the act.
Redundancies and Musk’s million package
In its results announcement, Tesla emphasized that the increased pressure in the electric car market led to cost-saving measures. Last week, the company announced its intention to lay off up to ten percent of its employees worldwide. In its earnings release, Tesla said it remains committed to reducing costs.
Last week, Tesla’s efforts to revive the $56 billion pay package for the company’s CEO, a billionaire, which was once blocked by a Delaware court, also came to light. For Elon Musk.