Tesla’s profits plunge 55% as shares rise on plans for cheaper vehicles | Technology

The Texas-based company reported first-quarter profits of $1.1 billion, down from $2.51 billion a year earlier.

Tesla reported a 55% drop in profits due to intense competition in the electric car market, but shares rose on plans to accelerate production of more affordable models.

The Austin, Texas-based company on Tuesday reported first-quarter profits of $1.1 billion, down from $2.51 billion a year earlier.
But Tesla shares soared 11% after Chief Executive Officer Elon Musk said production of new, more affordable cars would begin in the second half of next year “if not later this year.”

Musk said on a conference call with analysts that these models “will take advantage of aspects of our current platform as well as new aspects of our next-generation platform.”

“So it doesn’t require a new factory or a massive new production line.”

Musk did not elaborate on the new vehicle, saying more details would be announced in August.

“I think we did our best on that front,” he said.

Musk, who has long touted self-driving robotaxis as a growth engine for the company, also spoke at length about the future of self-driving cars, saying Tesla “should be thought of as an AI robotics company.”

“I don’t think anyone who doesn’t believe Tesla is the solution to autonomy should be an investor,” he said.

Tesla, the country’s second-largest producer of electric vehicles after China’s BYD, has had a tough year, with supply chain disruptions caused by a Houthi attack on a ship in the Red Sea and an arson attack by environmentalists at a production facility in Germany. . .

Deliveries fell 8.5% in the first quarter, and the company’s stock price has fallen by nearly half since July of last year.

In a memo to employees earlier this month, Musk said the company was temporarily laying off more than 10% of its global workforce as the company was “lean, innovative and hungry for the next phase of its growth cycle.” He said he would be fired.

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