Profit, sales and revenue figures all plummet in difficult set of Q1 results for Tesla

  • Tesla’s first quarter net income tumbles 55% as global sales fall
  • The Texas-based company made reduced $1.13bn (£0.91bn) from January to March
  • Firm has responded by slashing prices in major markets around the world

Time 9:21 am, April 24, 2024

Tesla has announced drastically reduced sales, revenue and profit figures for the first quarter of 2024.

Figures posted by the EV giant show that the Texas-based outfit made $1.13bn (£0.91bn) in the first three months of the year, compared with $2.51bn (£2.02bn) in the same period 12 months ago.

Revenue also fell to $21.3bn (£17.1bn) – down 9% from last year – as slowing EV demand sparked a 9% drop in sales.

Elsewhere, the company’s net income plummeted 55% in a difficult set of results for Tesla and its controversial boss, Elon Musk.

The company’s gross profit margin also fell once again to 17.4%. A year ago it was 19.3%, and it peaked at 29.1% in the first quarter of 2022.

Excluding one-time items such as stock-based compensation, Tesla made 45 cents (36p) per share, falling short of analyst estimates of 49 cents (39p).

Tesla says a recent arson attack on its German plant and factory downtime as it switched factories to an updated version of the Model 3 sedan, contributed to the difficulties.

In a letter to investors yesterday (Apr 23), the company said that its vehicle sales growth ‘may be notably lower’ than last year as it works on the launch of its next generation vehicle and unidentified other products.

In response to the struggles, the brand has slashed its prices in a number of major markets, in a move which could have a major knock-on effect on the value of used EVs.

Car Dealer also reported last week that the outfit was planning to lay off more than 10% of workers just days before shareholders were asked to allow Musk’s record £45bn pay.

In an email to staff, the billionaire boss said: ‘We have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10% globally.’

He later added: ‘I would like to thank everyone who is departing Tesla for their hard work over the years.

‘I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

‘For those remaining, I would like to thank you in advance for the difficult job that remains ahead.

‘We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence.

‘As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.’

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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