Tesla reported a 24% drop in net profit. In the first quarter of 2023, the company managed to earn just $2.5 billion, which was the worst result in the last two years. The electric car maker’s revenue is falling due to lower product prices.
The American electric car manufacturer Tesla has published a report on its financial performance for the first quarter of 2023. According to the document, the company’s net profit for the first three months of this year fell 24% compared to the same period. of 2022.
In the first quarter of 2023, Tesla managed to earn just $2.5 billion, which was the worst result in the last two years. The company incurred a 17% increase in capital expenditures ($2 billion) and plunged significantly in terms of operating margin, to 11.4% from 19.2% in the first quarter of 2022.
Tesla’s final policy was to reduce its prices. On April 7, the company changed the price of the entire model range for the fifth time this year. For example, the base Model 3 dropped to $42,000 (-$1,000), Model 3 Performance to $52,000 (-$1,000), Model Y Long Range to $53,000 (-$2,000).
Tesla’s profits are falling despite rising EV deliveries. In the first quarter of 2023, the company launched 422.8 thousand cars on the market, 36.4% more than in the first quarter of 2022. Tesla deliveries exceeded analysts’ expectations.
Author:
Kirill Bilyk
Source: RB
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