Tesla struggles as the profits drop by more than half
The company announced that its profit fell to $1.13bn (£910m), compared with $2.51bn in 2023
Elon Musk, CEO of Tesla is still optimistic about the future of the company. He reassured his investors that a new model would be brought forward. The company have faced challenges from Chinese imports that are comparatively cheaper, this competition has affected the demands of Tesla in the market leading to a collapse in its stock price by 43% over 2024.
The analysts have said it will continue facing challenges. However, Tesla’s decision to launch new models from the second half of 2025 affected the market boosting its shares by 12.5%.
Musk has cleared his ambitions advocating his plans for self-driving cars and AI credentials. he even said considering it just a car company was the “wrong framework.” “If somebody doesn’t believe it is going to solve autonomy I think they should not be an investor,” he said.
The investors have suggested the company focus on launching a mass-market model with a lower price. However, the company is tempting the customers by cutting down the price in the major markets amid a downfall in sales.
Elon Musk’s Tesla has faced a huge decline in profit in the first three months of this year. The company announced that its profit fell to $1.13bn (£910m), compared with $2.51bn in 2023. Tesla is currently experiencing a hard time with a downfall in sales leading to a 10 per cent job cut in the company.
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