Tesla (TSLA) has reported its biggest revenue decline since 2012 as the electric vehicle maker announced first-quarter earnings that missed Wall Street’s targets across the board.
Despite the poor financial results, Tesla’s stock is up 10% in premarket trading after the company announced plans to bring a more affordable electric vehicle (EV) to market in early 2025.
For Q1 of this year, Tesla reported earnings per share (EPS) of $0.45 U.S. compared to $0.51 U.S. that was expected among analysts.
Revenue in the quarter totaled $21.30 billion U.S. versus $22.15 billion U.S. that was forecast on Wall Street. Sales were down 9% from a year ago, the worst annual decline since 2012.
Additionally, Tesla’s net income declined 55% in Q1 from the previous year.
On an earnings call with analysts and media, Tesla chief executive officer (CEO) Elon Musk said that the company will begin production of a more affordable electric vehicle model later this year with plans to begin deliveries in early 2025.
Musk also touted Tesla’s investments in artificial intelligence (AI) infrastructure, and said the company is in talks with another automaker to license its driver assistance system.
However, Musk also reiterated plans to develop a self-driving Robotaxi, a move that many analysts have criticized, and emphasized that earnings this year are likely to be challenged.
During the earnings call, Tesla stated in a slide deck that its “volume growth rate may be notably lower than the growth rate achieved in 2023.”
Tesla is struggling with slowing electric vehicle sales and rising competition. Earlier in April, the company launched a global restructuring plan, announcing that it will cut 10% of its workforce.
Prior to today (April 24), Tesla’s stock had declined 42% on the year and was trading at $144.68 U.S. per share, making it one of the worst performers in the benchmark S&P 500 index.
