Tesla Trouble: After Historic Drop In Sales, Profits Stumble By 55%

Tesla Trouble: After Historic Drop In Sales, Profits Stumble By 55%

The overall yearly numbers also don't tell a rosy story, as the EV-maker accrued a revenue of USD 21.33 billion, compared to USD 23.33 billion in 2023. Exhibiting a drop of 9 per cent.

Juviraj AnchilUpdated: Wednesday, April 24, 2024, 11:38 AM IST
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Image: Wikipedia

Good news does not appear to be on the horizon for the one trailblazer of a company, as Tesla, according to reports has witnessed a drop in its net profit. After raking up profits of a mammoth USD 2.51 billion in the first quarter of 2023, and an year later, in March 2024, the company's numbers stood at USD 1.13 billion, witnessing a slump of 55 per cent.

The Downward Revenue Slope

The overall yearly numbers also don't tell a rosy story, as the EV-maker accrued a revenue of USD 21.33 billion, compared to USD 23.33 billion in 2023. Exhibiting a drop of 9 per cent.

This also comes barely weeks after its sales number came out. In which, the company, for the first time since the pandemic lull of 2020, reported a drop in its sales numbers. Incidentally, it is also the first time since 2020, that Tesla is reporting a drop in its net profit.

The concerning part for the company, is that these results were even below, the estimates of USD 22.15 billion, which themselves were lower than the previous years numbers.

The concerning part for the company, is that these results were even below, the estimates of USD 22.15 billion, which themselves were lower than the previous years numbers.

The concerning part for the company, is that these results were even below, the estimates of USD 22.15 billion, which themselves were lower than the previous years numbers. | Representational image

When it comes to the sales, which is directly connected to its earnings, The US-based company, purportedly produced up to 433,000 electric vehicles in the year. But, could only manage to deliver 387,000 of them. This meant, the company was left with 46,000 cars unsold.

Tesla's Challenges

In addition, Tesla's problem with competition is only growing wider, apart from other players, BYD remains Musk's flagship enterprise's fiercest rival. The Chinese company, which through its pricing, has swayed major markets, has even forced the 'premium' carmaker, that Tesla is, to lower its prices.

In another development, that could only be seen as a knee-jerk reaction, the company slashed the prices of its major models, including Model Y in US and most importantly in China. Meanwhile, it is becoming more evident, that the company is under immense pressure, as it laid off as many as 10 per cent of its workforce in one go.

Company's boss, Elon Musk has now invoked the need for a 'restructuring' the company.

Despite that, Tesla shares ended the day's trade on 24 April at USD 144.68, having gained 1.85 per cent.  

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