Big blow to Tesla, profit reduced by more than 50 percent

American electric vehicle (EV) maker Tesla has seen a huge decline in profit and revenue in the first quarter of the current year. In the first quarter, the company’s profit declined by approximately 55 percent year-on-year to approximately $1.1 billion and revenue declined by nine percent to approximately $21.3 billion.

Tesla has been facing difficulties for the last several months. Its sales are decreasing. It has also decided to reduce its workforce. The company’s investors hope that it will launch an affordable electric car next year. This may increase the sales of the company. Recently, the company had reduced the prices of some of its models in America by up to $2,000. Tesla’s deliveries declined by approximately 8.5 percent in the first quarter.

Last week, Tesla Chief Executive, Elon Musk postponed his visit to India. During this visit, he was also to have a meeting with Prime Minister Narendra Modi. Musk was scheduled to come on April 21 to announce the launch of business in India. Billionaire Musk had said in a post on social media platform “Due to the heavy workload at Tesla, the visit to India has to be postponed but I am looking forward to this visit in the current year.” Apart from Tesla, Musk is also seeking permission to start business in the country for his satellite internet service providing company Starlink. Sources having information about this had said that the Central Government has assured Starlink of getting this permission by the third quarter of this year.

Prime Minister Modi and Musk had a meeting in New York, America in June last year. Tesla had lobbied to impose import tax on electric vehicles in the country. Last month, the central government had announced a new EV policy in which the import tax on some models has been reduced from 100 percent to 15 percent if an automobile company invests at least $ 500 million. However, the country’s automobile companies were strongly opposing this exemption. Recently, a report said that Tesla has started manufacturing right-hand drive cars at its plant in Germany for export to India. The company will focus on states like Gujarat, Maharashtra and Tamil Nadu for its factory where the automotive industry is already present.