Tesla’s earnings falls by 55% as shares rise due to promises for less expensive cars

In the face of intense competition in the electric car industry, Tesla announced a 55% decline in earnings, yet shares surged on the company’s intentions to speed up the manufacturing of more accessible models.

 

The Austin, Texas-based business claimed $1.1 billion in first-quarter earnings on Tuesday, a decrease from $2.51 billion in the same period last year.
However, when CEO Elon Musk said that the manufacture of new, more inexpensive cars will start in the second half of next year “if not late this year,” Tesla’s shares shot up 11%.

During a conference call with investors, Musk said that the models “will use new aspects of the next generation platform as well as aspects of our current platform.”

Therefore, it is not dependent on building a large new manufacturing line or plant.

Musk said that further information about the new cars would be made public in August, although he did not go into depth.

He said, “I believe we’ve said everything we can on that front.”

Speaking extensively on the potential of autonomous cars, Musk—who has long hailed autonomous robotaxis as the firm’s growth engine—said that Tesla “should be thought of as an AI robotics company.”

“I think people should not be investors if they don’t think Tesla can solve autonomy,” he said.

The Houthi assaults on ships in the Red Sea and the arson attack by environmental activists at a German manufacturing site have created supply chain problems for Tesla, the second-biggest manufacturer of electric cars behind China’s BYD, which has had a challenging year.

In the first quarter, the business’s car deliveries decreased by 8.5 percent, and since July of last year, the share price of the corporation has dropped by over half.