After reporting its first-quarter financial results, Tesla, the pioneering electric car pilot, revealed that adjusted profits fell 48%. Analysts watch Wall Street bet on the decline, failing to predict a decline. But it remains confident of raising hopes with the company's promise to launch a cheaper model next year.
Total revenue was also down 9%, missing analysts' forecasts. While margins fell 2 percentage points, overall Tesla remains committed to bringing more affordable models to customers in the second half of 2025 as part of convincing the market.
Details about the upcoming car are still lacking, with Tesla still hiding information such as a target price or production volume. There is a regret that comes with Elon Musk's tone of voice for making himself seem unattractive. Look at it like a horse-drawn carriage.
Instead of focusing on Tesla's broader strategic plans, especially in the areas of artificial intelligence and autonomous driving capabilities, Elon Musk plans to make these technologies a reality by licensing these technologies to manufacturing competitors. and designs robots and autonomous taxis.
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Elon Musk's acknowledgment of the company's role in advancing artificial intelligence and robotics has been confirmed. "We should be thought of as an artificial intelligence and robotics company." This, like Tesla's early days, is a rallying cry for investors' enthusiasm about the opportunities ahead for Tesla.
After disappointing first-quarter financial results, Tesla shares rose 11% in after-market trading, a sign of confidence from investors. The company has tried to feed interest by pivoting away from unfavorable financials and bad news such as global sales cuts, layoffs and persistent price cuts.
Tesla faces stiff competition from both Western automakers that are setting up and Chinese manufacturers that are rapidly expanding their electric car offerings. In fact, Chinese automaker BYD beat Tesla to become the world's largest electric car maker last year.
Recent reports show Tesla is abandoning plans to produce cheaper models because of competition from China. Responding to Elon Musk's media claims that they are false, however, Elon Musk has been aware of the noise of cheap electric cars from Chinese manufacturers before.
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Tesla's adjusted net profit of $1.5 billion missed analysts' estimates, making it its smallest quarterly profit since the start of the pandemic in 2020. The company also reported a cash outflow that wiped out $2.5 billion. dollar coin This negative cash flow is the first since the start of the pandemic.
The first quarter was a challenging period for Tesla, including delivery disruptions due to the conflict in the Red Sea. Fire attack at German factory and the acceleration of production of the new Model 3 in California.
Tesla's financial results face serious scrutiny, though. But its commitment to innovation and value still speaks to its determination to put itself in the right direction in the electric vehicle industry.
