The presentation of its results reflected that the company contracted its profits by 24% compared to the same period last year and reduced its operating margin by 7.8 percentage points.
The actions of Tesla Inc, Elon Musk’s electric car company plunged 9.8% to $162.99 a share on Wall Street after the presentation of its results in the first quarter of the year, where it was reflected that the company contracted 24% in its earnings compared to the same period last yearwhile reducing its operating margin by 7.8 percentage points.
The results reflect that its operating margin closed the first quarter of the year at 11.4%, which is almost 8 percentage points less than the 19.2% in the same period of 2022.
This reduction in margins is linked to the strategy applied by the company in recent months, marked by the reduction in prices of “many models” in all the regions in which it operates.
However, the company led by Elon Musk defends that the year-on-year reduction in operating margin registered in the first quarter is “manageable” and has stressed that its objective is “continue reducing costs” of their vehicles, improve production efficiency and reduce logistics costs.
Tesla registered an attributable net profit of US$2,513 million in the first quarter of the year, which represents a 24% reduction compared to the US$3,318 million recorded in the same period of 2022.
It also increased its revenue to US$23,329 million in the first quarter of the year, 24% more than the US$18,756 million it billed between January and March 2022.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
