Tesla is expected to report its first-quarter earnings, with analysts predicting earnings per share of 51 cents and revenue of $22.15 billion. However, there are concerns as Wall Street is projecting a 5.1% drop in revenue from the previous year, marking the first year-over-year decline in sales since 2020.
Tesla shares have dropped by 42% this year due to worries surrounding weak deliveries, increased competition in China, and the company’s continuous price cuts. The recent 8.5% decline in vehicle deliveries for the first quarter has added to the company’s challenges. This comes at a time when the electric vehicle market is experiencing slower sales growth despite the ongoing demand.
In response to the challenges, Tesla, along with its key rivals, has resorted to slashing prices of electric vehicles to encourage demand. The company also underwent a significant restructuring phase, including two executive resignations and a global workforce cut of over 10%. This was accompanied by the decision to shift focus from producing a low-cost electric car to advancing self-driving technology.
Elon Musk, CEO of Tesla, has repeatedly promised investors and customers a self-driving vehicle. Despite multiple announcements, Tesla has yet to deliver on this promise. Musk has now indicated an unveiling of a Tesla robotaxi in 2024, raising questions about the feasibility of this timeline and the company’s ability to deliver on its commitments. Shareholders have also submitted queries regarding a realistic timeline for launching a revenue-generating robotaxi network and updates on a cheaper next-generation vehicle.
The livestream of Tesla’s earnings call brings anticipation and uncertainty regarding the company’s future prospects. While facing challenges and increased competition, Tesla is striving to maintain its position in the electric vehicle market by focusing on technology advancements and price adjustments. The road ahead for Tesla remains uncertain as it navigates through the evolving landscape of the automotive industry.