(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Jonathan Guilford
NEW YORK, April 23 (Reuters Breakingviews) - Elon Musk’s automaker is accelerating a plan to make cheaper electric car models. Yet its recent performance disappointed, and rivals like GM are resurgent. Tesla wants investors to believe the future will be better than the present, and as good as the past. It’s a stretch.
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Electric automaker Tesla generated $21.3 billion in revenue in 2024’s first quarter, it reported on April 23, down 9% from the year prior. Automotive revenue of $17.4 billion, down 13% year-over-year, came in some 11% below analysts’ expectations, according to LSEG. The company’s earnings per share of $0.34 fell below consensus forecasts of $0.45.
Tesla said it is accelerating the launch of "new models," including "more affordable" vehicles, ahead of a previous target to start production in late 2025. Reuters had previously reported on April 5 that the company had de-emphasized efforts to produce a long-rumored $25,000 car, referred to as the "Model 2" by industry analysts.
General Motors the same day reported revenue of $43 billion and operating profit of $3.9 billion for its first quarter, some 3% and 25% above analyst estimates. The company raised its full-year guidance.
(Editing by Jonathan Guilford and Sharon Lam)
((For previous columns by the author, Reuters customers can click on Jonathan.Guilford@thomsonreuters.com; Reuters Messaging: Jonathan.Guilford.thomsonreuters.com@reuters.net))