The company is also facing increasing competition, particularly from Chinese carmakers, and its share of the US EV market has dropped from 62% to 51% in a year. Despite this, Tesla appears to be cutting costs rather than investing in new products, with recent layoffs affecting key areas such as EV charging, public policy, and battery development. This strategy has raised concerns among industry experts, who argue that Tesla should be using its cash reserves to address its current problems rather than making cuts.
Key takeaways:
- Tesla's first quarter results show a decrease in sales and profit, with the company burning through $2.5bn of cash in the quarter.
- CEO Elon Musk has been focusing on the company's commitment to artificial intelligence and a fully autonomous car, despite the technological and regulatory hurdles ahead.
- Tesla's Supercharger network, a key asset for the company, has been impacted by layoffs, including the senior director of EV charging and her entire team.
- Despite the financial struggles, Musk continues to make ambitious claims about the future of Tesla, including the production of a "purpose-built robotaxi" and a fleet of "several tens of millions" of vehicles by the end of the decade.