Tesla quarterly revenue falls for first time since 2020

Bengaluru — Tesla’s revenue fell in the first quarter as it handed over fewer electric vehicles (EV) to customers due to slowing demand and intense competition worldwide.

The company on Tuesday reported revenue of $21.3bn for the three months to end-March, compared with $23.33bn a year earlier. Analysts on average had estimated $22.15bn, according to LSEG data.

Net profit in the first quarter stood at $1.13bn, compared with $2.51bn, a year earlier.

The world’s most valuable carmaker recorded a fall in revenue in the second quarter of 2020, when the Covid-19 pandemic hampered production and deliveries.

Tesla also said on Tuesday it had accelerated the launch of new models from the second half of 2025, sending its shares up nearly 7% in after-hours trading.

“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the electric vehicle maker said.

Tesla did not elaborate on pricing of the new vehicles.

Reuters reported earlier that Tesla had cancelled its long-promised inexpensive model that CEO Elon Musk in January had predicted would be available in late 2025.

It continues to develop robotaxis on the same small-vehicle platform.

Global growth in demand for EVs has eased, with sales expanding at lower-than-expected rates due to reductions in state subsidies and high interest rates.

“Global EV sales continue to be under pressure as many carmakers prioritise hybrids over EVs,” Tesla said.

Reuters