Tesla’s stock experienced a significant drop of more than ten percent due to disappointing earnings and a forecast of ongoing slowdowns throughout the year.
The report states that Tesla’s revenue and auto revenue increased by only three percent and one percent respectively in the fourth quarter of last year. Tesla also mentioned that the growth in sales volume may be significantly lower in 2024 compared to the previous year.
Elon Musk, the CEO of Tesla, has caused further confusion by threatening to separate artificial intelligence projects from the company unless he can regain a 25 percent stake, which some investors view as a form of blackmail.
During the call this week, Musk attempted to assure investors that an affordable electric vehicle for the mass market is still in the works, even though there are no prototypes or public designs available yet. Although he conceded that the construction of such a vehicle is unlikely to occur before the latter part of 2025.
The troubles faced by Tesla indicate that the release of their highly anticipated Cybertruck did not generate much enthusiasm. It is evident that the company had to make significant concessions in order to bring Elon Musk’s passion project to fruition, resulting in the truck failing to meet fans’ expectations in terms of its limited range.
The carmaker’s attempts to achieve “Full Self-Driving” have been unsuccessful and are currently under investigation by the government due to incidents involving emergency vehicles.
Instead of focusing on cars, Musk is now trying to spin Tesla as an “AI/robotics company” thus putting the company’s core business of selling cars seemingly on the back burner.
Reference- Futurism, Elon Musk Twitter Handle, The Verge, CNBC, Inside EVs