In the first three months of the year, the company’s revenue fell 9%, amounting to 21.301 million dollars. Contributing to the drop in sales, “is a drop in the average price of vehicles” and also a drop in sales volume, “partially justified by the update of the Model 3” and production disruptions at the Berlin factory. To this is added a “negative exchange rate impact of 200 million dollars”, explains the company, in a statement.
Investment in artificial intelligence and other research and development projects contributed to the decline in operating results, as well as the costs associated with the mass production of the “Cybertruck”, says Tesla. In the period in question, the electric car manufacturer’s deliveries fell 8.5% to 386,810 cars, as the company announced at the beginning of this month.
Despite the drop in profits and revenue, Tesla shares are gaining more than 8% in the after-hours, driven by the prospects for the launch of new, more affordable models. “We updated our range of vehicles to accelerate the launch of new models, including cheaper models, ahead of the previous statement, which pointed to the start of production in the second half of 2025”, says the company.
This factor is weighing more than the prospects for a lower growth rate this year. Many investors and analysts see the production of affordable electric vehicles as a great potential driver of growth for Tesla. The manufacturer’s shares, in fact, fell sharply after Reuters reported, earlier this month, that Tesla would abandon plans for a new, cheaper model.
Since the beginning of this year, the automaker’s shares have slid close to 42%.
News updated at 9:45 pm
