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Tesla reported its first sales decline in almost four years last quarter. Despite high expectations, the company’s turnover dropped by 9 percent year on year to $21.3 billion, falling short of analysts’ estimates. Earnings per share also missed estimates, with net profit declining by 55 percent to $1.13 billion.
In the first quarter, Tesla delivered approximately 387,000 vehicles, which is 8.5 percent less than the same period last year. The company attributed some of the decline to the temporary closure of the factory in Grünheide, Germany, near Berlin, due to sabotage of power supplies. Despite this setback, Tesla plans to bring more affordable electric cars to the market sooner than previously planned and start production of a new electric car before the middle of next year.
The challenges in sales have not stopped Tesla from continuing to innovate and launch new products. The company has been facing competition in the Chinese market and has responded by announcing a round of layoffs that will reduce the workforce globally by more than 10 percent. Despite these setbacks, Tesla remains committed to staying competitive in the electric vehicle market and pushing forward with its plans for growth and innovation.
Tesla’s sales decline was unexpected as analysts had predicted an increase in sales this quarter due to rising demand for electric vehicles worldwide. However, after-hours trading saw Tesla shares drop more than 7 percent, adding to a total decline of over 40 percent since the beginning of the year.
Tesla’s CEO Elon Musk has acknowledged that there are challenges ahead for the company but remains optimistic about its future prospects. He believes that by bringing more affordable electric cars to market and investing in new technologies such as autonomous driving and battery development, Tesla can continue to grow its business and maintain its leadership position in the electric vehicle industry.
Overall, while Tesla faced challenges in sales this quarter, it remains committed to pushing forward with innovation and product launches while addressing competition from other automakers such as General Motors and Volkswagen Group.
