Elon Musk, during an analyst call, also noted that Cybertruck, Tesla’s latest EV, will take at least 18 months to be profitable.
As the rumours of Tesla entering India get stronger, the electric car maker has been struggling to post profits. The company reported a net profit of $1.9 billion from July to September 2023, representing a 44% Year-on-Year (YoY) drop. The company had posted a $3.3 billion figure last year.
Notably, Tesla had slashed its car prices by up to 25% last year. However, the same has not worked in the company’s favour as its market share in the US declined 50% in the quarter. During the first quarter, the same was 60%.
On the other hand, sales of electric vehicles launched by BMW, Mercedes, General Motors, Hyundai, are increasing. These also seem to be eating into the market share of Elon Musk headed Tesla.
Musk, during an analyst call, also noted that CyberTruck, Tesla’s latest EV, will take at least 18 months to be profitable. “We dug our own grave with Cybertruck,” Musk was quoted saying by the New York Times.
According to him there will be there will be “enormous challenges in reaching volume production with Cybertruck” and “making it cash flow positive”.
During the analyst call he said, “The blood, sweat and tears that will be required to achieve that is just staggering.” While the demand for Cybertruck is in a “million”, higher interest rates have “reduced people’s ability to purchase new cars”.
In China, the companies car deliveries fell 34.2% month-on0month in October, following a 32.8% drop in September, according to China Passenger Car Association CPCA.
