Tesla’s Q1 2024 earnings report revealed a 9% drop in revenue, the steepest year-over-year decline since 2012, and a 55% drop in net income. The company’s revenue declined from $23.33 billion a year earlier to $21.30 billion, falling short of the expected $22.15 billion. Net income dropped to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, a year ago.
Tesla’s automotive revenue also declined 13% year over year to $17.38 billion in the first three months of 2024. Despite these figures, Tesla shares jumped 13% in extended trading after CEO Elon Musk announced that production of new affordable EV models could begin sooner than expected, possibly as early as late 2024 or early 2025.
Musk also highlighted Tesla’s investments in artificial intelligence infrastructure and revealed that the company is in talks with a major automaker to license its Full Self-Driving (FSD) system. However, Tesla warned investors that the volume growth rate in 2024 may be notably lower than the growth rate achieved in 2023. As of Tuesday’s close, Tesla’s stock price is down more than 40% this year as the company faces increased competition globally and slowing sales growth across EVs.
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