Tesla revenue falls for first time in four years, profit down 55 percent

US electric vehicle maker Tesla's net profit fell 55 percent in the first quarter of this year to USD 1.13 billion (CZK 26.6 billion), while revenue declined for the first time in four years. This was according to a statement published overnight. At the same time, however, the automaker announced that it would accelerate production of new, more affordable vehicles, sending its shares higher.

Revenue fell nine percent in the first quarter to USD 21.3 billion. Sales volume declined by nearly nine percent amid increased competition and slowing demand for electric vehicles. Earnings per share excluding one-off items came to 45 cents, below the estimate of analysts polled by FactSet, who had expected earnings of 49 cents per share.

Investors and analysts were looking for some sign that Tesla would take steps to halt this year's decline in its share price and boost sales, the AP news agency noted. In a letter to investors, Tesla said production of smaller, more affordable models would begin sooner than previously expected. The smaller models, which will likely include the small Model 2 priced at around $25,000, will use platforms from next-generation vehicles and some features of current models. They will therefore be built on the same production lines as current models, and no new factories or production lines will be needed for the new vehicles. Chief Executive Elon Musk said on a conference call with analysts that he expects production to begin in the second half of next year, but it could also start at the end of this year.

Tesla reiterated that vehicle sales growth could be significantly lower this year than last year as it works on launching a new generation of vehicles. According to many analysts, weaker sales raise questions about demand for Teslas and other electric vehicles.

Tesla shares have fallen by more than 40 percent since the start of this year. However, after trading officially ended in the US on Tuesday, they began to rise, at one point gaining as much as 12.5 percent.