Tesla’s quarterly revenue fell for the first time in nearly four years, according to filed financial results, demonstrating why the electric car maker is further reducing its prices as well as its cost base.
The company, founded and managed by Elon Muskreported revenue of $21.3 billion in the first three months of the year, its first quarter.
This represents a 9% decrease from the $23.3 billion obtained during the same period last year.
However, Tesla shares – down about 40% year to date – were up 6% in after-hours trading.
This is mainly due to the announcement that the promised launch of new models would be “accelerated” from the second half of 2025.
Tesla previously revealed that vehicle deliveries fell 9% to 386,810 over the quarter.
The company then partly blamed shipping disruptions in the Red Sea and an arson attack at a factory in Berlin.
“Global electric vehicle sales under pressure”
Tesla added on Tuesday: “Global electric vehicle sales continue to be under pressure as many automakers prioritize hybrids over electric vehicles.
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“While this is positive for our regulatory credits business, we prefer that the industry continues to promote the adoption of electric vehicles, which is consistent with our mission.
“To support our growth, we have increased our awareness and expanded our vehicle financing programs, including attractive leasing terms for our customers.”
The world’s most valuable automaker by market capitalization has struggled with weak demand for its electric vehicles since last year, with industry commentators highlighting continued consumer concern over electric vehicle range.
Other challenges include the squeeze on consumer budgets due to inflation and the impact of rising interest rates across much of the Western world.
Threat from China
Tesla has cut prices significantly on several occasions, including last week, in an effort to attract buyers at the expense of profitability.
But its efforts have been hampered by strong competition, mainly from China, which is seeking to compete with Tesla.
The California-based company is also seen by analysts as being at a disadvantage due to the lack of a budget model.
Cybertruck facing floods
The Reuters news agency reported a few weeks ago that plans for its cheapest model yet had been scrapped.
There was no further information about what was to go into the production lines in the results filing.
Job cuts at Tesla
Analysts also question how Musk manages the pressures on his time amid his broad interests, which also include X and SpaceX.
Earlier this month, Musk decided to invest more in Tesla through a cost-cutting program that included 15,000 job cuts.
This represents more than 10% of the total workforce.
“We have updated our future vehicle lineup to accelerate the launch of new models ahead of the previously announced start of production in the second half of 2025,” the company said.
“This update may result in a lower cost reduction than previously anticipated, but allows us to cautiously increase our vehicle volumes in a more investment efficient manner during uncertain times.”
The savings, intended to boost productivity, could also go some way towards quality control, given complaints from some customers about fundamental defects.
The press was negative last week when regulators revealed a recall covering more than 3,700 Cybertrucks for fear of the accelerator pedal getting stuck.
The problem has to do with a simple coating on the pedal itself.
