TESLA SAYS IT'S SPEEDING UP DEVELOPMENT OF MORE AFFORDABLE EVS

Tesla's revenue and profit tumbled in the first quarter, but the company promised to speed up the development of new vehicles as it encounters stiff headwinds in the EV space.

Why it matters: Tesla is grappling with slumping sales, increased competition and questions over its spending priorities.

Driving the news: The company on Tuesday reported revenue of $21.3 billion and net income of $1.13 billion in the first quarter, down 9% and 55% from the same period a year earlier

• The performance fell short of S&P Capital IQ estimates of $22.26 billion in revenue and $1.48 billion in net income.

Between the lines: In an earnings presentation, Tesla acknowledged "numerous challenges," including logistical hurdles in producing and delivering the recently refreshed Model 3 sedan.

• The company said it is "expanding vehicle financing programs," including "attractive leasing terms" after vehicle deliveries fell 8.5% in the first quarter, compared with a year earlier.

The automaker has responded to the sales slump by implementing cost cuts, including the previously announced intent to cut 10% of its workforce, which totaled about 140,000 people as of 2023.

• "We are focused on profitable growth," Tesla Tuesday.

Yes, but: After a recent Reuters report that the company had canceled the development of an affordable vehicle dubbed the Model 2 — a report CEO Elon Musk denied — Tesla on Tuesday said it's moving faster new vehicles.

• "We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025," Tesla said.
• "These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up."

Tesla shares were up roughly 6% in after-hours trading following release of the earnings presentation.

The company also said it's not pulling back on its investment priorities, including AI and self-driving vehicles, which Musk believes will usher in a lucrative future.

• In the short-term, however, the company's partially self-driving technology is being discounted.

What we're watching: Musk will address investors, analysts and media during an earnings call at 5:30pm ET.

2024-04-23T20:41:29Z dg43tfdfdgfd