Tesla, the big player in electric vehicles, had a tough time in the first part of the year. Their revenue dropped by 9%, the biggest fall since 2012. Even though they didn’t meet what the experts predicted, their stock went up in later trading. That’s because CEO Elon Musk said some encouraging things about Tesla’s plans to get new affordable electric cars out sooner than expected.
Tesla’s Plans for Affordable Electric Vehicles:
Tesla announced that Tesla plans to make cheaper electric cars, maybe by 2025. This contradicts recent reports suggesting that Tesla’s CEO, Elon Musk, scrapped the idea of a cheaper “Model 2” car to focus on releasing a robotaxi. However, Musk didn’t explain if the more affordable electric vehicle would be a completely new model or just a simpler version of their existing cars.
Musk’s plans and the company’s efforts show they’re determined to stay ahead in the electric vehicle world. Musk had planned to release the much-awaited next-generation affordable car, called the Model 2 (colloquially), around the second half of 2025.
Additionally, Tesla hinted at creating a “purpose-built robotaxi product” using a “revolutionary” manufacturing method, although they didn’t give a clear timeline for its release. This announcement is in line with a Reuters report from April 5, which discussed Tesla’s ongoing work on a self-driving robotaxi using the same platform planned for the Model 2.
Financial Performance:
Compared to what people on Wall Street thought, Tesla didn’t earn as much. They made 45 cents per share instead of the 51 cents people expected. And their total revenue was $21.30 billion, not hitting the $22.15 billion expected. That’s a big drop from last year when they made $23.33 billion. Their net income also fell a lot by 55%, down to $1.13 billion.
Sales Decline:
Tesla sold fewer cars this year compared to last year. It wasn’t because of the pandemic but because they’ve been cutting prices. Their car sales brought in $17.38 billion in the first quarter of 2024, 13% less than last year.
Tesla’s plans:
Elon Musk is staying positive about the future. He thinks they might start making new models earlier than they thought, maybe by the end of this year or early next year. Elon Musk, the CEO of Tesla, confirmed during a post-earnings call on Wednesday that the company Tesla plans to begin production of its next-generation electric cars at its Texas factory in the latter part of 2025. Moreover, Tesla is also looking into using their technology in other car brands and investing in AI.
Outlook and Initiatives:
Tesla’s being careful about 2024. They think they might not grow as fast as last year. To tackle this, Tesla plans to start making new cheaper electric vehicles codenamed “Redwood” in mid-2025 and increase production by more than 50% compared to 2023 before building new factories.
Tesla’s been through some tough times lately, but they’re still focused on growing and making better electric cars.
