Tesla's revenue met Waterloo, and the unexpected announcement promoted affordable models to boost the share price
2024-04-23 20:32:08
On Tuesday, Tesla (TSLA. O) reported a 9% drop in Quarter 1 revenue, the largest drop since 2012, as the electric car company weathered continued price cuts. Net profit fell 55% to $1.13 billion from $2.513 billion a year earlier. The drop in sales even outpaced the company's first drop in 2020 due to the epidemic. Tesla's car revenue fell 13% year-over-year to $17.34 billion in Quarter 1 2024. However, Tesla said it was accelerating the launch of "new models, including more affordable models" that would be "capable of being produced on the same production lines as Tesla's existing product lines", helping its shares jump 8 per cent in after-hours trading. Tesla's gross margin also beat expectations at 17.4 per cent.
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