Tesla’s profitability have dropped by more than 50%.

According to Tesla, their first-quarter earnings dropped significantly to $1.13 billion (£910 million) from $2.51 billion in 2023.

Tesla's profitability have dropped by more than 50%.The profitability of Tesla has decreased by over 50%.It ends a challenging time for the manufacturer of electric vehicles (EVs), which has announced thousands of job losses in response to declining sales.

CEO Elon Musk told investors that new models would be introduced and expressed his continued optimism for the company’s future.

Although experts say it still faces substantial hurdles, especially from lower-cost rivals, its share price has increased.

Tesla fires almost 10% of its employees

The company’s stock price fell 43% over 2024 as a result of declining demand and competition from lower-priced Chinese imports.Revenues for the first quarter of 2024 came in at $21.3 billion, which was less than experts’ forecast of little over $22 billion.

However, Tesla’s decision to delay the release of new models until the second half of 2025 increased the value of its shares by around 12.5% during after-hours trading.

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