The disastrous quarterly accounts, the new round of layoffs and yesterday’s rally on the stock market. Tesla’s 2024 opened full of contradictions. The US company published the results of the first months between Tuesday and Wednesday and, for the first time since 2012, recorded a decline in revenues: minus 9% to 21 billion dollars compared to 386,810 vehicles sold. Net profit also fell, falling by 55% to 1.1 billion dollars. The verdict from Wall Street is severe, where Tesla has lost more than 40% of its value since January. Founder Elon Musk (in the photo) has already announced a 10% cut in Tesla’s overall workforce: 6,305 employees in Texas, California and New York alone will lose their jobs from June 14th. «The decline in volumes – we read in a company statement – was partly due to the initial phase of the production ramp of the updated Model 3 at our Fremont plant and to factory closures due to shipment diversions caused by the conflict in Red Sea and the arson attack on the Gigafactory in Berlin.”
Yesterday, however, Tesla recorded a double-digit recovery on the stock market (+11%), thanks to Musk’s promise according to which the company will produce new economical models between the end of this year and the first months of 2025. «These New vehicles – Tesla specifies – including more economical ones, will use aspects of the next generation platform, as well as aspects of our existing platforms, and can be produced on the same production lines as our current range of vehicles». A statement that was appreciated by investors, but which disappointed those looking for answers after the Model 2 case, the project for the presumed new low-cost car which was apparently shelved at the beginning of April. Also weighing on Musk’s strategy is the interest rate policy of the Fed and ECB, which has already forced Tesla to reduce prices by up to 2 thousand dollars for the Model 3 and Model Y. The market pressure is becoming unsustainable. The feeling is that the launch of self-driving robotaxis will not be enough to break the impasse. Musk – who ended up in the crosshairs of a Delaware judge who rejected the 56 billion compensation approved by the shareholders – will have to create the new range of low-cost electric cars.
Otherwise it will end up crushed in competition with Chinese companies supported by incentives from the Beijing government.
