This is evident from company figures for the first quarter of this year.
Quarterly turnover decreased
Earlier this month it was revealed that the company has had one of the worst quarters in years when it comes to sales. Tesla delivered about 387,000 electric cars to customers and produced 433,000. In the same quarter a year earlier, there were 422,000 and 440,000 respectively.
It is now also known that quarterly turnover has fallen to $21.3 billion, compared to $23.3 billion a year ago. Net profit even more than halved to $1.1 billion.
According to the company, the disappointing figures are partly because the factories were able to produce less because fewer parts could be supplied due to the conflict at the Red Sea. The factory in Berlin was also paralyzed by activists.
Moreover, Tesla is struggling with declining demand for cars and competition from other car manufacturers, especially from China. Chinese electric cars from BYD, among others, are selling like hot cakes. They are cheap, but therefore threaten to push other makers out of the market.
It forced Musk to cut prices for a number of models in China and the US, among others. For example, the Model 3 became more than 1,800 euros cheaper in China – and this was immediately responded to with price reductions from competitors. Tesla also has to reorganize and wants to cut more than 10 percent of all jobs.
Tesla is struggling with more problems, because things are not going well with its flagship Cybertruck, an electric pick-up truck that can easily cost a ton.
About 4,000 units delivered to customers have to be recalled because the truck’s accelerator pedal can lock up. Owners previously complained about rust.
