Tesla profit plunges 55%, as shares bounce on plans for cheaper vehicles
Al Jazeera
The Texas-based company reports profits of $1.1bn in the first quarter, down from $2.51bn a year ago.
Tesla reported a 55 percent drop in profit amid fierce competition in the electric vehicle market, but shares rallied on plans to accelerate the production of more affordable models.
The Austin, Texas-based company on Tuesday reported profits of $1.1bn in the first quarter, down from $2.51bn a year ago. But shares of Tesla soared by 11 percent after CEO Elon Musk said that production of new, more affordable vehicles would begin in the second half of next year “if not late this year”.
The models “will use new aspects of the next generation platform as well as aspects of our current platform”, Musk said on a conference call with analysts.
“So it’s not contingent on any new factory or massive new production line.”
Musk did not elaborate on the new vehicles, saying more details would be released in August.
