Tesla Inc (TSLA)

[boston745]

Tesla profits drop 55%, company says EV sales ‘under pressure’ from hybrids

Tesla profits fell 55% to $1.13 billion in the first quarter from the same year-ago period as a protracted EV price-cutting strategy and “numerous challenges” cut into the automaker’s bottom line.

Tesla reported revenue of $21.3 billion in the first quarter, a 9% drop from the first quarter of 2023. Analysts polled by Yahoo Finance expected earnings of $0.51 per share on $22.15 billion in revenue. Tesla reported operating income of $1.2 billion in the first quarter, a 54% decrease from the same year-ago period.

The company said in its Q1 earnings report that it experienced “numerous challenges” in the first quarter, including the Red Sea conflict and the arson attack at Gigafactory Berlin and the gradual ramp of the updated Model 3 at its factory in Fremont, California. Tesla also noted that global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs. On the upside, that hybrid approach has meant automakers continue to buy regulatory credits; Tesla earned $442 million in the first quarter.

Those challenges are not what caused Tesla to sell significantly fewer cars. Inventory grew over 40k to over 140k end of Q1 so obviously not a production issue. New models that supposedly helped this pop the Model 3 Highland or other updated versions of its current vehicles that incorporate aspects of Model 2 assemblies? Thats nothing to be overly bullish about. Robotaxi is nothing to be overly bullish about either as FSD is a long way from being used for anything other than testing in a few cities. Testing in cities will equate to greater R&D burn and legal costs associated with accidents.
Looks like they are trying to control the narrative by utilizing a technical breakout to take focus away from Teslas dimming future.

https://techcrunch.com/2024/04/23/tesla-profits-drop-55-company-says-ev-sales-under-pressure-from-hybrids/

Tesla = a fake it until it makes it scam that is putting the greater public in danger....worldwide.
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