Tesla is gearing up to reveal its first-quarter earnings after the bell on Tuesday, with analysts forecasting earnings per share of 51 cents and revenue of $22.15 billion. However, Wall Street predicts a 5.1% decline in revenue compared to the previous year, marking the first year-over-year drop since the Covid-19 pandemic disrupted production in 2020.
The electric vehicle company’s shares have taken a hit this year, plummeting by 42% amidst worries about weak deliveries, increased competition in China, and the firm’s continued price reductions. Notably, Tesla reported an 8.5% decrease in vehicle deliveries for the first quarter, indicative of the intensified competition in the global electric car market.
Company Restructuring
In a bid to remain competitive, Tesla recently underwent a significant restructuring, marked by the resignations of two key executives, Drew Baglino and Rohan Patel. Additionally, CEO Elon Musk announced a workforce reduction of over 10% in a companywide memo. The company has shifted focus from developing a low-cost electric vehicle to prioritizing self-driving technology, with Musk expressing a commitment to advancing autonomous capabilities.
Unveiling New Technologies
Despite ongoing challenges, Tesla continues to promise groundbreaking innovations, such as the unveiling of a Tesla robotaxi projected for August 8, 2024. While shareholders eagerly await updates on the timeline for launching a revenue-generating robotaxi network and the progress of a more affordable next-generation vehicle, concerns persist about the firm’s ability to deliver on these ambitious promises.
Shareholders have submitted questions for Tesla executives ahead of the earnings call, seeking clarity on the company’s future strategies and technological advancements. The livestream of the earnings call is scheduled for 5:30 p.m. ET, providing investors and analysts with valuable insights into Tesla’s performance and trajectory in the challenging global electric vehicle market.
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