Tesla’s profit in the first quarter of this year is half of that in 2023

As investors suspected, Tesla announced that the company’s profit sharply fell in the first three months of this year to $1.13 billion, compared to $2.51 billion in 2023.

This confirms the difficult period for the most well-known electric vehicle manufacturer, which, faced with a significant drop in sales, announced the layoff of more than 10 percent of its workforce. Recall that in December 2023, this second largest electric car manufacturer in the world had 140,473 employees globally, of which over 20,000 people work at Tesla’s Fremont factory in California, which would mean that more than 14,000 Tesla employees in numerous countries around the world will lose their jobs.

Nevertheless, Elon Musk remains optimistic about his company, telling investors that the launch of new models will come sooner than they think. Tesla’s stock price has risen, but analysts say it still faces significant challenges, including competitors with lower costs.

The company has suffered from a decline in demand and competition from cheaper Chinese imports, which has led to a 43 percent drop in stock prices during 2024. Data for the first quarter of 2024 reveal revenues of $21.3 billion, which is a drop from analysts’ forecasts who expected just over $22 billion, reported the BBC.

Those who do not believe should not invest

However, Tesla has decided to accelerate the launch of new electric vehicle models that were planned for the second half of 2025, and this decision resulted in a nearly 12.5 percent increase in the company’s stock price in after-hours trading. This means that investors reacted positively to the news of the earlier launch of new models, but their prices have not yet been disclosed.

However, Musk has made it clear that he has bigger ambitions, praising Tesla’s artificial intelligence and plans for self-driving vehicles. He even went so far as to say that it is merely a car company ‘misinterpretation’. On the other hand, he may be outpaced in his ambitious plans, at least when it comes to self-driving robotaxis, by Mate Rimac, who recently announced on his Facebook profile that he will present his first autonomous car to the public on June 26 of this year.

– If someone does not believe that Tesla will solve autonomy, I think they should not be an investor – Musk said, addressing those who doubt Tesla’s business.

However, analysts justifiably doubt such ventures, and Deutsche Bank has stated that driverless cars face ‘technological, regulatory, and operational challenges’.

Some investors have urged the company to instead focus on producing electric vehicles for the mass market at a lower purchase price, which it is already doing in several markets due to weak sales.

– Global sales of electric vehicles remain under pressure as many car manufacturers prioritize hybrids over electric vehicles – the company stated.