Tesla released its financial report for the first quarter of 2023 on Wednesday. It shows that – although the company’s revenues have increased – its profits have fallen, which investors did not like. In trading after the end of the session on the US stock exchange, the automaker’s shares fell more than 6 percent, despite the fact that the financial results themselves turned out to be almost in line with analysts’ estimates.
Tesla’s profits fell sharply. The company also loses in the stock market
Tesla’s revenue grew 24% in the first quarter, according to the report. year on year and amounted to USD 23.3 billion. This is primarily due to the price reduction of four of the most popular cars – Model 3, S, X and Y – which Tesla launched in Europe, the US, China, Australia and several Asian markets. It was another reduction in the price list (the sixth in the US), thanks to which the sales of cars of the American manufacturer increased. However, the profits of the company led by Elon Musk fell. And it’s up to 24 percent. (up to USD 2.51 billion).
Lower earnings are caused by lower margins on Tesla products while maintaining the company’s operating costs at an almost unchanged level (a decrease of only 1%). How, the manufacturer had to cut the industry’s highest margin of 19.2 percent. in the first quarter of 2022 to 11.4 percent. Now. The company felt this painfully, because it is the sale of cars that earns by far the most. In addition, capital expenditures increased (in the first quarter, Tesla spent USD 2 billion, i.e. 17% more), which resulted in lower profits than in the same period a year earlier.
Elon Musk threatens to sue Microsoft. It was about artificial intelligence
Elon Musk did not comment on Tesla’s results in his social media, but he managed to threaten to sue Microsoft. The billionaire accused the American giant on Twitter of training his artificial intelligence model using data from Musk’s social networking site. He also threatened to file a lawsuit against the manufacturer of Windows. Musk did not elaborate on the problem, but he published his message that Microsoft is withdrawing Twitter from its advertising platform (Microsoft Advertising) because it does not intend to pay fees for using the Twitter API.
“They trained illegally using Twitter data. Time to sue,” wrote Elon Musk. The head of the social platform has a serious problem, because Microsoft is just one of the companies (but a huge one) that has given up advertising cooperation with Twitter. Since the takeover of the service by the controversial billionaire, Twitter was to lose about half of its advertisers, which certainly does not have a positive effect on the already poor results of the social network. despite the fact that in October Elon Musk paid 44 billion dollars for it.
Source: Gazeta
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