San Francisco. Tesla’s operating income for the first quarter of 2023 will drop 24 percent to $2.7 billion. The EV maker run by Elon Musk continues to cut prices of its vehicles. However, total revenue rose 24 percent (year-over-year) to $23.3 billion in the first quarter due to price cuts.
Tesla shares fell 4 percent in after-hours trading late Wednesday.
In an earnings call with analysts, Musk said Tesla will begin deliveries of its long-delayed Cybertruck in the third quarter of 2023.
Musk said, “It takes time to get off the manufacturing ring line and it really is a very revolutionary product. It’s not built the way other cars are built.”
“One thing I can say for sure is that this is an incredible product,” he said.
In the first quarter, Tesla’s automotive revenue reached nearly $19.9 billion, an 18 percent year-over-year increase.
Tesla ended the March quarter with free cash flow of $441 million, down 80 percent from the same period last year.
The company said that while we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our software-related profits to accelerate in tandem with our hardware-related profits.
Tesla delivered 422,875 vehicles in the first quarter.(IANS)
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