Tesla CEO Elon Musk said the company will accelerate the launch of less expensive EV models after its profits and revenue under performed for the third consecutive quarter.
“The EV adoption rate globally is under pressure, and a lot of other auto manufacturers are pulling back on EVs and pursuing plug-in hybrids instead,” Musk said during an earnings call with analysts Tuesday after the market closed. “We believe this is not the right strategy, and electric vehicles will ultimately dominate the market. Despite these challenges, the Tesla team did a great job executing in a tough environment.”
Austin, Texas-based Tesla (NASDAQ:TSLA) reported first-quarter revenue of $21.3 billion, a 9% year-over-year decrease, which also fell short of analysts’ estimates of $22.34 billion. Adjusted earnings per share for the quarter came in at $0.45 per share, versus analysts’ estimates of $0.51 per share.
Tesla announced last week it was reducing its global workforce by 10% amid dropping sales and an intensifying price war among EV makers.
On Monday, Tesla filed a WARN notice with the Texas Workforce Commission that the company will be permanently laying off 2,688 employees in the Austin area by June 14, according to Reuters. Tesla also cut 3,332 jobs in California, including 1,500 workers at its factory in Fremont. The layoffs are expected to occur over the next several weeks.
Tesla reported 386,810 global vehicle deliveries during the first quarter, below estimates of 449,080. The company produced 433,371 vehicles during the quarter, also below estimates of 452,976.
During the earnings call, Tesla officials were asked about the status of the Tesla Semi, an all-electric Class 8 truck the automaker introduced in December 2022. The Semi can reportedly haul the maximum legal weight of 81,000 pounds for 500 miles at highway speed.
Mass production of the Semi has been delayed by production issues and a recall for parking brake issues. Tesla delivered an initial batch of 35 Semi trucks to Pepsi and Frito-Lay last year.
“We’re finalizing the engineering of the Semi to enable a super cost effective, high volume production, with our learnings from our pilot fleet and Pepsi’s pilot fleet,” a Tesla executive said during the call. “In parallel, we have started construction on the factory in Reno. Our first Semi vehicles are planned for late 2025, and for external customers starting in 2026.”
Tesla officials did not discuss plans for its $5 billion Gigafactory Mexico during the call with analysts. In March 2023, Musk announced Tesla’s newest car factory will be built about 136 miles from the Texas-Mexico border near the Mexican city of Monterrey.
In October, Musk said the Gigafactory Mexico project is facing pressure from interest rates and the global economy.
“For Mexico, we’re working on infrastructure and factory design in parallel with the engineering development of the new production [line] that we will be manufacturing there,” Musk said during the company’s third-quarter earnings call with analysts. “I think we want to just get a sense for what the global economy is like before we go full tilt on the Mexico factory. I’m worried about the high interest rate environment that we’re in.”
TeslaQ1/24Q1/23Y/Y % ChangeTotal revenue$21.3B$23.2B(9%)Automotive revenue$17.4B$19.9B(13%)Number of vehicles built433,371440,808(2%)Number of vehicles delivered386,810422,875(9%)Earnings per share$0.45$0.85(47%)Tesla first-quarter earnings snapshot.
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