Tesla, the innovative electric vehicle company led by Elon Musk, made headlines recently as its shares jumped 13% following the announcement of its ambitious goal to release an affordable new electric vehicle by early 2025. This news has sparked excitement among investors and consumers alike, as Tesla continues to push the boundaries of what is possible in the world of sustainable transportation.
The company's commitment to making electric vehicles more accessible to a wider range of consumers is commendable and aligns with their mission to accelerate the world's transition to sustainable energy. By offering a more affordable option, Tesla is not only expanding its market reach but also contributing to the global effort to reduce carbon emissions and combat climate change.
The stock jumped in extended trading after CEO Elon Musk told investors that production of new affordable EV models could begin sooner than expected.
Revenue declined from $23.33 billion a year earlier and from $25.17 billion in the fourth quarter. Net income dropped 55% to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, a year ago.
The drop in sales was even steeper than the company’s last decline in 2020, which was due to disrupted production during the Covid-19 pandemic. Tesla’s automotive revenue declined 13% year over year to $17.38 billion in the first three months of 2024.
Tesla did not give much in the way of details about this new, lower-priced model it is promising, such as a target price or its production volumes. And CEO Elon Musk and Tesla have a history of not living up to timelines on vehicle launches. But the promise that it is still moving ahead with a lower-priced model was assuring news in the wake of reports that it would drop plans for the vehicle altogether.
However, the company added it will "continue to increase" its AI infrastructure capacity in the "coming months" and that it is currently working on ride-hailing functionality that will be "available in the future."
"The future is not only electric, but also autonomous," the company said in its earnings release. "We believe scaled autonomy is only possible with data from millions of vehicles and an immense AI training cluster. We have, and continue to expand, both."
Musk added on the earnings call that "if somebody doesn't believe Tesla is going to solve autonomy, I think they should not be an investor in the company."
Increasingly, Tesla's investments are going toward autonomous vehicle technology. While it's not yet clear what the current consumer demand is for self-driving cars, Tesla is positioning itself to have an enormous head start, said Tyson Jominy, vice president for data and analytics at J.D. Power.
Read more
Clippers 96-93 Mavs in Game 2 WNBA star Kelsey Plum, Giants' Darren Waller tight end divorce after 1 year of marriage
Sarah H
Also on site :
- Fujitsu and RIKEN develop world-leading 256-qubit superconducting quantum computer
- As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not
- Scout Surface Solutions LLC Acquires Kinetic Pressure Control Ltd., Expanding Global Capabilities and Technology Leadership in Pressure and Flow Control