Tesla's Q1 Results Present Various Negative Aspects, But Roadster Development Is Advancing | Carscoops

      Elon Musk has announced that he will reduce his involvement with DOGE and refocus on Tesla starting next month.

      Tesla’s overall revenue decreased from $21.3 billion to $19.3 billion in the most recent quarter.

      The company's total earnings have fallen dramatically from $1.39 billion to $409 million in the first quarter.

      New affordable models will incorporate components from its current and next-generation platforms.

      After a disappointing first quarter, marked by a sharp decline in global sales, Tesla has now released its earnings report for that period. As expected, the results are not promising. Revenue fell short of analyst expectations, attributed not only to weak sales but also to uncertainty across various industries and difficulties within global supply chains.

      However, there is some positive news for Tesla as well. The company claims it is on the verge of launching more affordable models.

      In terms of numbers, Tesla’s total revenue in the first quarter dropped to $19.3 billion, reflecting a 9.4% decrease from $21.3 billion in the first quarter of 2024. Compared to the previous year's second, third, and fourth quarters, where revenue was $25.5 billion, $25.1 billion, and $25.7 billion respectively, the decline is even more pronounced. Tesla's automotive revenue also suffered, falling from $17.3 billion in Q1 2024 to $13.9 billion this quarter, a decline of 19.6%, and down 30.5% from a peak of $20 billion in Q3 2024.

      The significant drop in revenue is not the only concern for Tesla's shareholders; total income plummeted by 71%, from $1.39 billion in Q1 2024 to $409 million, down from $2.1 billion in Q4 2024.

      The company cites the decline in revenue primarily due to a marked reduction in deliveries during the first quarter. As previously reported, Tesla delivered 336,681 vehicles, which is a 13 percent decrease from the same period last year. The company indicates that the decline in deliveries was partly due to updates at its four factories for the production of the new Model Y, and that average selling prices for vehicles fell in the last quarter.

      “Uncertainty in the automotive and energy sectors is increasing as rapidly changing trade policies negatively affect the global supply chain and cost structure for Tesla and its competitors,” Tesla stated. “This situation, alongside shifting political sentiments, could significantly influence demand for our products in the near future. We remain dedicated to expanding our business model to facilitate the delivery of autonomous robots across various forms and applications—leveraging our real-world AI capabilities—for our clients and use in our factories as we address these challenges.”

      Despite declining revenue and deliveries, Tesla has some intriguing developments on the horizon. Production of new vehicles, including more affordable options, is expected to begin in the first half of 2025, reaffirming a commitment made by Tesla in January, contrary to recent claims about delays.

      Details about these more affordable models are limited, with indications that they may be simplified versions of the Model 3 and Model Y. Tesla mentioned these models will “incorporate features from the next-generation platform as well as components from our current platforms and will be produced on the same assembly lines as our existing vehicle lineup.”

      Additionally, Tesla has announced that production of the Cybercab is set to begin in 2026. The next-generation Roadster has advanced from the “development” phase to “design development,” although no launch timeline has been specified. Notably, it has been 7.5 years since the Roadster was first unveiled.

      In a development that may bring some relief to shareholders, Elon Musk will be reducing his role with the Department of Government Efficiency (DOGE). Starting next month, he will concentrate more on Tesla, where his involvement is needed most. This change could potentially lead to greater stability, although with Musk at the helm, one should expect a few distractions along the way.