Tesla’s profits sink as the company struggles with cooling demand

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Tesla reported disappointing first quarter earnings, with the company’s profit margins reaching new lows. The company has struggled with cooling demand and rising competition.

Tesla reported its first quarter earnings during an incredibly shaky moment for the company in which sales numbers and the stock price have both fallen. Against this backdrop, Tesla reported $1.1 billion in net income on $21 billion in revenue, down 9 percent from $23.3 billion the same time last year. The company’s profits, once the envy of the auto industry, are at their lowest in six years thanks to rampant price cutting and slowing demand.

5 billion, meaning there is no cash left over after meeting Tesla’s operating, capital, and adjusting for noncash expenses. Tesla CEO Elon Musk is expected to face pointed questions from investors on these numbers as well as recent reports that the company has paused development of a new low-cost “Model 2” electric vehicle that was expected to come in at $25,000.

 

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