Tesla, Elon Musk’s company, reported its first sales decline in almost four years last quarter. The turnover dropped by 9 percent year on year to $21.3 billion, falling short of analysts’ expectations. Earnings per share also missed estimates, with net profit declining by 55 percent to $1.13 billion.
In the first quarter, Tesla delivered approximately 387,000 vehicles, which is 8.5 percent less than the same period last year. The company attributed some of the decline to the temporary closure of the factory in Grünheide, Germany, near Berlin, due to sabotage of power supplies.
Tesla did not provide a specific forecast for car deliveries for the year but expects a significant decrease from the previous year. After-hours trading saw Tesla shares drop more than 7 percent, adding to a total decline of over 40 percent since the beginning of the year.
In an effort to boost sales and stay competitive in the electric vehicle market, Tesla announced plans to bring more affordable electric cars to market sooner than previously planned. The company aims to start production of a new electric car before the middle of next year, moving up from the previous second half of the year timeline.
Despite facing challenges in sales and competition from other automakers like Chinese manufacturers who have been gaining market share in recent years, Tesla continues to push forward with innovations and new product launches to remain competitive in this space.
Tesla has been facing challenges in sales in particular in China’s competitive market where it has seen setbacks recently. In response to these challenges, Musk announced a round of layoffs that would reduce Tesla’s global workforce by more than 10 percent.
While these setbacks may have caused some concern among investors and analysts about Tesla’s future prospects for growth and profitability