• Tesla reported a 9% drop in revenue in the first quarter, the steepest year-over-year decline since 2012.
  • As of Tuesday’s close, the company’s stock price is down more than 40% this year as Tesla faces increased competition across the globe.
  • Musk said on the call that the company plans to start production of new models in “early 2025 if not late this year,” after previously expecting to begin in the second half of 2025.

Tesla analyst estimates when it revealed its first-quarter revenue decline of 9% on Tuesday, the largest since 2012. The electric vehicle maker is still dealing with the impact of continuous price reductions. Following CEO Elon Musk’s announcement to investors that production of new, reasonably priced EV models might start earlier than anticipated, the stock shot up in extended trading.

Details on Tesla shares

Revenue fell from $25.17 billion in the fourth quarter to $23.33 billion a year earlier. From $2.51 billion, or 73 cents per share, a year earlier, to $1.13 billion, or 34 cents per share, net income fell by 55%.

The company’s previous sales decline in 2020 was caused by production disruptions during the COVID-19 pandemic, but this time the decline was even more severe. In the first three months of 2024, Tesla’s automotive revenue fell 13% year over year to $17.38 billion.

Tesla shares were down more than 40% this year, to their lowest point since January 2023, before a 13% increase after hours due to worries about the company’s continuous price cuts, weak deliveries, and competition in China. Tesla revealed earlier this month that first-quarter vehicle deliveries were down 8.5% compared to the same period last year.

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Plans for new models

After previously anticipating to begin in the second half of 2025, Musk stated during the call that the company plans to start production of new models in “early 2025 if not late this year.” Along with praising Tesla’s investments in AI infrastructure, Musk revealed that the business is in discussions to license its driver assistance system—known in the US as the Full Self-Driving, or FSD, option—with “one major automaker.”

The company stated in the presentation deck that it will be releasing new models more quickly that “may be produced on the same manufacturing lines” as Tesla’s present lineup of “new vehicles, including more affordable models.” Before investing in new production lines, Tesla wants to “fully utilize” its current production capacity and achieve “more than 50% growth over 2023 production.”

Tesla also displayed screens from a robotaxi-based ride-hailing service in the deck. For years, the company has made promises about a self-driving car, but Musk hasn’t seen through them.