Tesla registers a 55% drop in its net profit in Q1 – 2024-04-24 13:03:09

2024-04-24 13:03:09

(FILES) The Tesla logo is seen at the Santa Monica Place store in Santa Monica, California, on March 20, 2023. – Tesla reported a big drop in quarterly profits on April 23, 2024, pointing to elevated pressure on the electric vehicle market that has led to deep cost-cutting. Elon Musk’s EV company reported profits of $1.1 billion, down 55 percent from the year-ago quarter on revenues of $21.3 billion, down nine percent. (Photo by Patrick T. Fallon / AFP)

The American electric car manufacturer Tesla recorded a sharp drop of 55% in its net profit in the first quarter compared to the same period last year.

In the first three months of the year the group had a turnover of 21.3 billion dollars, 9% less than in the same period last year, and its net profit fell to 1.3 billion dollars.

Per share, net income is 45 cents, compared to 49 cents expected by analysts.

“We had many challenges in the first quarter,” Tesla said in a statement in which it cited the problems of maritime transport in the Red Sea due to attacks by the Houthi rebels or the sabotage of its plant in Germany.

The manufacturer insisted that global sales of electric cars are “under pressure as many manufacturers prioritize hybrids over electric cars.”

Tesla invested $2.8 billion in the first quarter of the year in artificial intelligence infrastructure, production capacity and charger network.

“The future is not simply electric, but also autonomous,” he said.

Tesla said there should be advances in autonomy and new models, sooner than expected, including “cheaper” vehicles.

This perspective fueled a jump in its stock of more than 10% on electronic exchanges just over an hour after the Wall Street close.

© Agence France-Presse