Alan Musk’s company Tesla’s profit fell 71%, the stock broke 40% in 1 year, why did this happen? – Cross Talk India

Billionaire allen musk Has suffered a shock. Actually, Elan Musk’s company Tesla has a major decline in profits. Not only this, the price of share has also fallen in its face. Let us tell you that the company in Austin, Texas, said on Tuesday that the quarter profit fell 71 percent to $ 40.9 million or 12 cents per share. This is much lower than analysts estimated. Tesla’s income declined by nine percent to $ 19.3 billion during the January-March period. This is less than the forecast of ‘Wall Street’. This year, Tesla’s stock has fallen by more than 40 percent, but it has increased slightly after trading.

Will give more time to Tesla

Alan Musk has said to give more time in view of Tesla’s deteriorating financial situation. Musk said he would give more time to Tesla from May, as the company has recorded a major decline in the first quarter profits. The company has faced displeasure over the leadership of Musk of the group cutting the federal government jobs.

Why is Tesla’s profit falling?

Auto sector experts say there are several reasons for Tesla’s profit to decrease, including decrease in demand, increase in competition, prices cuts and increasing costs. Not only this, loans being expensive in the US and Europe affected customers’ purchasing capacity. This has reduced the demand for electric vehicles. Due to inflation and economic uncertainty, people are hesitant to buy expensive EVs. Tesla is getting a fierce competition from the Chinese company byd. At the same time, companies like Ford, General Motors, Volkswagen and Hyundai have offered cheap and more options. Due to this, Tesla reduced the prices of Model 3 and Model Y several times so that demands increase, but it has dropped the margin per vehicle. Due to all these reasons, Tesla’s profit has decreased and the stock has declined.

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