Tesla reported on Tuesday Q1 revenue of $21.3bn compared to $23.3bn last year, missing analyst's expectations for $22.3bn. That marks Tesla’s first year-on-year quarterly drop since the start of 2020.
Adjusted earnings per share almost halved from a year ago to 45 cents, versus estimates for 52 cents. Gross margins declined for the sixth consecutive quarter to 17.4%, down from a peak of 29.1% in Q1 of 2022.
Despite the miss in earning, Tesla stock price leaped 12.06% yesterday on hopes that the car maker will accelerate the launch of more affordable models. The company mentioned that new budget vehicles could be produced on its existing manufacturing lines.
Hours after Tesla's call to investors, their largest rival BYD, announced plans to bring its ultra-cheap Seagull EV to Europe and the UK next year. The vehicle, sells for less than $10,000 in China.
sources: Financial Times, Tesla
Comments