Tesla reports 9% drop in first quarter revenue

Tesla reported a 9% annual decline in first-quarter revenue, the electric vehicle (EV) company said on Tuesday.

The revenue drop, Tesla’s biggest since 2012, comes as the electric vehicle company 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 $2,000 each on Friday, just weeks after reporting a significant drop in first-quarter sales.

Vehicle deliveries fell 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 in 2024.

The EV company attributed the decline in sales and revenue to recent shipping difficulties in the Red Sea, an arson attack at a German factory and increased production of its updated Model 3 at a factory in California.

Tesla also announced plans last week to cut 10% of its workforce, or about 14,000 employees, which CEO Elon Musk argued would “allow us to be lean, innovative and hungry for the next cycle of the growth phase.”

Since the beginning of the year, the company’s share price has fallen by more than 40%.

However, Tesla shares jumped in trading on Tuesday after announcing plans to accelerate the production schedule for new vehicles, including more affordable models.