Tesla reported its first quarter performance for 2024 after delivering figures earlier that caught attention, with headlines of layoffs, price reductions for FSD software, and Cybertruck recalls causing CEO Elon Musk to postpone negotiations with Indian leaders. Key financial figures include:
– Total revenue of $21.301 billion, a 9% decrease compared to the same quarter last year
– GAAP net profit of $1.129 billion, a 55% drop with earnings per share (EPS) of $0.34
– Negative free cash flow of $2.531 billion
The revenue decline was attributed to reduced vehicle deliveries, partly from Fremont factory production line updates for Model 3 and Berlin factory closures. The profit margin decrease was due to car price reductions, increased AI investments, and higher costs from the newly launched Cybertruck. However, production costs per vehicle decreased from lower material and related expenses.
Tesla mentioned plans to introduce new car models, including lower-priced ones that can utilize existing production lines, and aims to ramp up full vehicle production ahead of schedule before expanding further.
Source: Tesla (pdf) and CNBC
TLDR: Tesla’s Q1 2024 financial results showed decreased revenue and profits, attributed to various factors including production line updates, new investments, and Cybertruck costs, with plans to introduce new models.
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