Tesla

Tesla Releases Q1 Report: Underwhelming?

Tesla: Year-Over-Year Drop

Tesla has just released their 2024 Q1 (first quarter) earnings report. Many experts regard it as the most disappointing financial turnout Tesla has seen for many years. Their year-over-year earnings saw the steepest drop from the last quarter since 2012. Many of their reports were below the expectations of analyst forecasts.

Tesla’s revenue dropped by 9%, the steepest drop since 2012, to $21.3 billion. This was significantly less than Wall Street’s prediction of $22.5 billion. Their profit per share was around 45 cents, compared to the predicted 51 cents. The company’s stock price is down almost 40% since last year as Tesla begins to face more competition. The company’s cash amount also dropped, however, it is still at around $26.9 billion.

The drop in revenue was even steeper than during the COVID pandemic in 2020.

Tesla Quarterly Revenues: From CNBC

Factors affecting the Drop

Tesla blames various reasons for this disappointment. They blame the reduced prices of EVs in various countries to make them more affordable. Musk stated that the production of a more affordable EV could begin in early 2025. This could revert the prices of other vehicles.

They also argue that conflict in the Red Sea has slowed down exports from factories. Berlin’s giga-factory also faced an arson attack, heavily slowing down production.

The Future?

The capital expenditure in research and development during Q1 was around $2.8 billion. They claim that while investors are pulling out, they still want to push down on new technology. This includes better AI infrastructure for driverless vehicles, increased production capacity (such as a new EV plant in India), and superchargers. Tesla announced that AI training computing increased by 130% in Q1.

Tesla wants to focus on the future to raise profits, rather than dwell on their mistakes in the past.

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