Tesla suffers massive drop in profits – minus 71 percent

Tesla has completed the past quarter after a model change and controversy about the political role of company boss Elon Musk with significant declines in sales and profits. The revenues fell by nine percent in the year to a good $ 19.3 billion. The bottom line was that profit broke by 71 percent to $ 409 million compared to the same period last year.

With the numbers, Tesla missed the expectations of the analysts. They had expected an average of $ 21 billion in sales. In the adjusted profit per share, Tesla came to $ 0.27, while an average of $ 0.39 was expected on the market.

The stock fluctuated between light profits and slight losses in the after -interconnected trade. At the same time, Tesla confirmed that the production of cheaper model variants should begin in the first half of 2025. It was also confirmed that a robot taxi should be manufactured without a steering wheel and pedals from 2026.

The results are not surprising: Tesla’s deliveries fell by 13 percent to 336,681 vehicles in the first quarter. It is difficult to determine how strongly individual reasons contributed to the decline. A factor should be the switch to a renewed generation of the bestseller Model Y.

Tesla converted the production lines at the beginning of the year. For this, production paused for a few weeks. At the same time, pricing prospective customers were less to buy a vehicle of the previous Y variant.

But Musk’s political activities also threw a shadow on the Tesla business. The tech billionaire became a tight ally of Donald Trump last year, to whom he donated more than $ 250 million for the election campaign for the White House. As President, Trump Trump him with the lowering of government expenditure.

Critics accuse Musk of ruthless action in the cuts in Washington. In addition, his right political views scare some potential Tesla buyers. Analyst Dan Ives from Wedbush Securities, who long expressed himself very optimistically about the future of Tesla, estimates that the damage to the brand by Musk’s brand could permanently push the Tesla demand by 15 to 20 percent.