Tesla's Profit Dips Amid Demand Challenges

Tesla's quarterly financials missed expectations due to lackluster demand from an aging vehicle lineup, despite financing deals and discounts. The electric car giant aims for growth via cheaper models and new autonomous technology, but faces stiff competition from global rivals like BYD, BMW, and Volkswagen.

Tesla's recent earnings report revealed a shortfall relative to Wall Street expectations, due to sluggish demand for its older vehicle models. The company's strategies, including financing offers and discounts, failed to sustain interest while negatively impacting profit margins.

The electric vehicle manufacturer reported a decline in automotive profit margins in the fourth quarter of 2023, falling from 17.05% to 13.59%. Their revenue was significantly lower than predicted, reaching $25.71 billion compared to the $27.27 billion estimated by analysts.

As Tesla grapples with intense competition from global rivals such as BYD, BMW, and Volkswagen, it plans to introduce cheaper models and enhance deliveries, including the much-anticipated Cybertruck, to achieve growth targets. Yet, the absence of details regarding pricing and features keeps markets on edge.

(With inputs from agencies.)