Tesla saw a 9 percent year-over-year decline in first-quarter revenue, the electric vehicle company said Tuesday.
The drop in revenue, Tesla’s largest since 2012, comes as the EV firm faces falling sales and growing competition.
Tesla slashed the price of three of its best-selling vehicles – the Model X, Model Y and Model S – by $2000 each on Friday, just weeks after reporting a significant dip in first-quarter sales.
Vehicle deliveries were down 8.5 percent compared to last year, falling from 423,000 in the first quarter of 2023 to 386,810 in the same three-month period of 2024.
The EV company has blamed declining sales and revenues on recent shipping difficulties in the Red Sea, an arson attack on a German factory, and the ramp-up of production of its updated Model 3 at a California factory.
Tesla also announced plans last week to cut 10 percent of its workforce, or about 14,000 employees, which CEO Elon Musk argued would “enable us to be lean, innovative and hungry for the next growth phase cycle.”
Since the start of the year, the company’s stock price has fallen by more than 40 percent.
However, Tesla’s stock jumped in after-hours trading Tuesday, after announcing plans to move up the timeline on production of new vehicles, including more affordable models.