Tesla’s latest quarterly earnings have shown a sharp decline in profits and revenue, as the company struggles to recover from Elon Musk’s involvement in politics. The electric vehicle manufacturer reported a 12% drop in revenue and a 16% decrease in profits, with sales dropping sharply due to buyer reluctance.
The issue is largely attributed to Musk’s recent actions, including his support for far-right politicians in several European countries, which alienated potential buyers. Rival electric vehicle makers such as China’s BYD and Germany’s Volkswagen have capitalized on Tesla’s weakness, stealing market share.
Despite this, Musk remains optimistic about the company’s future prospects, particularly with regards to its robotaxis service. He expects the service to be available in half of the US population by the end of the year and plans to introduce it in several other cities soon.
However, challenges lie ahead, including the elimination of a $7,500 credit for buying an electric car in the new federal budget, which could negatively impact Tesla’s business of selling “carbon credits” to traditional car companies. Musk also acknowledged that regulatory approval for its Full Self-Driving software is uncertain and may be delayed.
To boost sales, Tesla plans to introduce a cheaper model later this year. The company had previously announced that it would release the new model by June, but now expects it in the last three months of the year.
Musk’s focus on expanding the company’s robot business, including its humanoid Optimus helpers, also holds promise for explosive growth. With plans to produce 100,000 robots per month in five years, Musk aims to make Tesla a dominant player in the robotics market.
Overall, Tesla’s latest earnings report highlights the challenges facing the company as it navigates Musk’s politics and prepares for future growth opportunities.
Source: https://apnews.com/article/tesla-musk-trump-electric-cars-earnings-quarterly-profit-f231ff787a2f80bb9d29f09b36fbe033