Tesla’s profits have significantly decreased so far in 2024, prompting the company to accelerate the introduction of new models.
The company is also reducing its workforce by thousands in an effort to improve its financial outlook. The electric vehicle manufacturer reported earnings of $1.13 billion for the first quarter, a sharp decline from $2.51 billion in the previous year.
Job losses
Owned by billionaire Elon Musk, Tesla plans to lay-off over 6,000 workers across its Texas and California locations. The firm has been challenged by reduced demand and increased competition from more affordable Chinese imports, resulting in a 43% drop in its stock value throughout 2024.
This month, Tesla announced a 10% cut in its global workforce. Revenue figures for the first quarter of 2024 showed a total of $21.3 billion, falling short of the anticipated $22 billion.
However, Tesla’s shares saw a nearly 12.5% increase in after-hours trading following the announcement that the launch of new models would be moved up from the latter half of 2025. The company has yet to disclose the pricing for these upcoming vehicles.
On other Tesla matters…
Mr. Musk’s ‘compensation package’, previously valued at $56 billion, was rejected by a Delaware judge. The judge reportedly determined that Tesla’s directors failed to fulfill their duties to the company when they awarded Mr. Musk the payout.
With the decline in Tesla’s stock value, the compensation package is now estimated to be about $10 billion less, yet it remains larger than the GDP of many small countries.
Musk also appears to have his sights set on creating a Tesla manufacturing hub in India.
Tesla’s Cybertruck was reportedly recalled recently with a suspected accelerator pedal issue.