Tesla Faces Sales Decline in First Quarter and Unveils New Affordable Electric Car

Tesla faced a sales decline in the first quarter, with turnover dropping by 9 percent year on year to $21.3 billion. This was the company’s first sales decline in almost four years and fell short of analysts’ expectations. Earnings per share also missed estimates, with net profit declining by 55 percent to $1.13 billion.

Elon Musk’s company struggled to meet expectations in the first quarter, delivering approximately 387,000 vehicles, which is 8.5 percent less than the same period last year. The company attributed some of the decline to the temporary closure of the factory in Grünheide, Germany, near Berlin, due to sabotage of power supplies.

Despite the setbacks, Tesla continues to push forward with innovations and new product launches to stay competitive in the electric vehicle market. In an effort to boost sales, Tesla announced plans to bring more affordable electric cars to the market sooner than previously planned. The company aims to start production of a new electric car before the middle of next year, moving up from the previous second half of the year timeline.

Tesla has been facing challenges in sales, particularly in the competitive Chinese market. In response, Musk announced a round of layoffs to reduce the workforce globally by more than 10 percent. After-hours trading saw Tesla shares drop more than 7 percent, adding to a total decline of over 40 percent since the beginning of the year.