Tesla's net profit fell 24 percent to USD 2.5 billion due to vehicle price cuts

Tesla's net profit fell 24 percent year on year to 2.5 billion dollars (more than CZK 53 billion) in the first quarter, despite higher revenue. The automaker said so in a Wednesday statement after trading ended. News agencies say sharp price cuts are to blame, leaving their mark on the US electric carmaker's financial performance.

Revenue rose 24 percent to 23.3 billion dollars in the first three months of the year, although analysts had expected it to be slightly higher. Tesla shares fell almost four percent after the results were announced. Since the start of the year, however, their price has risen 50 percent.

Tesla delivered 422.875 electric vehicles in the first quarter. The company matched its previous record, but fell short of expectations. Its boss, Elon Musk, boosted sales this year through several rounds of price cuts. This has hurt profitability: Tesla's operating profit margin fell quarter on quarter from 16.0 percent to 11.4 percent. A year ago, it was still 19.2 percent. Tesla nevertheless remains ahead in this area. Ford and General Motors recently reported margins of five and seven percent, respectively, DPA reports.