Tesla’s shares rose 7% on Wednesday after CEO Elon Musk told investors that he is reducing government work to focus more on Tesla. Musk said that as of May, he will spend much less time with the Government Efficiency Department (Doge), a group with which he has been involved, and will change his attention to Tesla leader.
This news gave investors some hope, even though Tesla has just reported a disappointing quarter.
Gains lose expectations as the fall in income and profits
The results of Tesla’s first quarter were weaker than expected. The company contributed $ 19.34 billion in income, at the end of the Wall Street estimate of $ 21.43 billion and below $ 21.3 billion a year ago. The profits also decreased abruptly, with earnings per share that reached $ 0.27 compared to the expected $ 0.44. That is a 40% decrease last year.
Tesla pointed out commercial tensions and global changing policies as reasons of the weakest performance, saying that it is more difficult to manage supply chains and production costs. The company also warned that changing political climates could affect the demand for its short -term cars.
EVs still planned, but the growth forecast
Despite the challenges, Tesla says that she is still on the way to launch a more affordable electric vehicle in the first half of 2025, and aims to start producing her robotaxi in mass in 2026. However, the company said it will visit its guide again for 2025 when it reports the results of the second fourth. For now, Tesla has removed its long -term growth forecast.
This comes as the questions continue to turn about delays in the plans of lower costs of Tesla. While the reports suggested that the launch could be retreated, Tesla executives did not confirm or deny that. Instead, they emphasized that the company focuses on making its cars more affordable.
Sales slide as the rivals gain ground
Tesla deliveries received a blow to the first quarter, with 336,681 vehicles delivered, the lowest number since mid -2012. Meanwhile, other car manufacturers are seeing a sales impulse, especially when buyers try to get ahead of the new US tariffs in imported vehicles that entered into force in early April.
Tesla is also losing land before rivals such as BYD of China, who has been gaining market share abroad. In Europe, Tesla vehicle records fell in March, indicating more problems in key markets.
Musk’s policy agitates controversy, affects the brand’s image
Beyond the numbers, Musk’s political activity is adding pressure. His public support for Donald Trump and other conservative leaders in the United States and Europe has caused a violent reaction. The Tesla exhibition rooms have seen protests, and some Tesla vehicles have even been destroyed. These incidents are added to the tension in the brand, especially among the clients who once saw Tesla as a neutral and technological company.
Robotaxi tests begin in Austin this summer
Musk said that Tesla will begin to test her Robotaxi service in Austin from June. He said that Tesla’s self -employed cars will be much cheaper than competitors such as Waymo, who depend on expensive sensors. Musk says that keeping low costs is an important approach to the company, since it works in next -generation vehicles.
Despite the weak quarter, investors seem encouraged by Musk’s promise to return all his attention to Tesla. It remains to be seen if that will be enough for the company to return to the track, but for now, the markets are responding positively.
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(Tagstotranslate) Doge participation of Elon Musk
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