Tesla vehicles sit on the lot at a Tesla dealership in Austin, Texas, on April 15, 2024.
Brandon Bell | Getty Images
Tesla reported a 9% drop in first-quarter revenue on Tuesday, the biggest decline since 2012, as the electric vehicle company weathers the impact of ongoing price cuts.
Here are the results.
- Earnings per share: 45 cents adjusted vs. 51 cents per share expected by LSEG
- Revenue: $21.30 billion vs. $22.15 billion expected by LSEG
Revenue declined from $25.17 billion a year earlier. Net income dropped 55% to $1.13 billion from $7.93 billion a year ago.
The drop in sales was even steeper than the company’s last decline in 2020, which was due to disrupted production during the Covid pandemic. Tesla’s automotive revenue declined 13% year-over-year to $17.34 billion in the first three months of 2024.
Tesla shares have plummeted more than 40% this year on concerns about weak deliveries, competition in China and the company’s ongoing price cuts. Earlier this month, Tesla reported an 8.5% year-over-year decline in vehicle deliveries for the first quarter.
The stock, trading near its lowest since early 2023, rose about 5% in extended trading after the report.
The company wrote in a shareholder deck that it’s accelerating the launch of “new vehicles, including more affordable models,” that will “be able to be produced on the same manufacturing lines” as Tesla’s current lineup. Tesla is aiming to “fully utilize” its current production capacity and to achieve “more than 50% growth over 2023 production” before investing in new manufacturing lines.
Revenue in Tesla’s energy division increased 7% to $1.64 billion, while services and other revenue rose 25% to $2.29 billion compared to the same period last year.
Sales growth across EVs is slowing, and Tesla and key rivals have been slashing EV prices, on and off for months, to try to spur demand. Tesla’s gross profits plummeted 18% in the first quarter, partly owing to price cuts throughout the start of the year.
Tesla embarked on a massive restructuring this month with two executives, Drew Baglino and Rohan Patel, resigning. Musk said last week in a companywide memo that the automaker was cutting more than 10% of its global workforce.
Capital expenditures rose to $2.77 billion, up 34% from a year earlier.
A livestream of the earnings call is scheduled for 5:30 p.m. ET.
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