Tesla has stated that it will develop cheaper vehicles and gain permission for its self-driving software in Europe this year as it seeks to rescue its faltering company. Elon Musk’s electric vehicle company informed investors that it has begun “first builds of a more affordable model in June” despite a drop in car deliveries and declining revenues.
The company is floundering because to decreases in US government backing for electric vehicles, competition from Chinese automakers, and a brand tarnished by Musk’s controversial political activities. Meanwhile, Tesla informed investors that US tariff policy had cost it $300 million in the three months ending June 30 and warned of further pain in the coming months.
According to Chief Financial Officer Vaibhav Taneja, the expiration of a tax credit for buyers of electric vehicles in the United States is also likely to hurt. Tesla did not give an update on its year-end projection, noting that it was “difficult to measure the impacts of shifting global trade and fiscal policies.
Revenue fell 12% year on year in the three months ending June 30, the largest drop in at least a decade, as deliveries fell 14%. Profits dropped 16%. Musk told investors on Wednesday that he expects the company’s sales in Europe to increase once customers are allowed to use its self-driving software.
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