Tesla's sees 55% drop in net income in 1st quarter

Tesla reported a 55% decrease in net income in the first quarter of this year compared to the same period last year, due to decreased global sales and price reductions.

The American electric car manufacturer said it made $1.13 billion from January through March compared with $2.51 billion in the same period a year ago.

Tesla said that its revenue hit $23.3 billion, down by 9% in the first quarter of this year compared to the same period last year.

The company's revenue, which declined due to increased competition and slowing demand for electric vehicles, fell below market expectations during the period.

Decline in production, deliveries

While Tesla produced 433,371 cars globally in the first quarter of 2024, it delivered 386,810 vehicles, according to the report.

The company's vehicle production decreased by 2% on an annual basis during this period, and the number of vehicles delivered also decreased by 9%.

Tesla's official statement noted that global electric vehicle sales continued to be under pressure due to many car manufacturers prioritizing hybrids over electric vehicles.

The statement also added that the company invested $2.8 billion in capital expenditure in the first quarter for future growth, including its artificial intelligence infrastructure, production capacity, charging network, and new product infrastructure, while recently conducting cost-cutting efforts to improve operational efficiency.

"Ultimately, we are focused on profitable growth, including by leveraging existing factories and production lines to introduce new and more affordable products," it added.

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