For the first time in four years, quarterly revenue has declined, falling below market expectations for both revenue and profit. However, investors are reassured about the business direction, leading to a 6% increase in after-hours trading.
According to Tesla’s financial report released on the 23rd, first-quarter revenue was $21.31 billion, down 9% from the same period last year. Earnings per share (EPS) were $0.45, below the Wall Street average estimate of $0.51. Automotive revenue decreased by 13% compared to the previous year.
However, the company is focusing on profitable growth, including launching new, more affordable products using existing factories and production lines, interpreted as continuing plans to release low-cost electric cars.
Following the release of this performance report, Tesla’s stock has shown a 6% increase in after-hours trading.
This level falls short of the average estimate of Wall Street analysts, compiled by financial information provider LSEG, which stood at $22.15 billion.
The decline in Tesla’s quarterly revenue compared to the same period last year is the first since the impact of COVID-19 in the second quarter of 2020, approximately four years ago. Additionally, the magnitude of this quarter’s revenue decline is the largest since 2012.
First-quarter net profit for this year was $1.129 billion, approximately 55% lower than the same period last year.
