Good morning! It’s Wednesday, April 24, 2024, and this is The morning shift, your daily roundup of the biggest automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Tesla profits fall by 55 percent
Tesla doesn’t seem to be able to catch a break at the moment. Whether it falls Registrations as sales declineor bodged remembers its flagship modelsthe manufacturer of electric vehicles I’m definitely having a lot of fun doing it at the moment. This reached its peak last night when the company announced that it had made a profit dropped by a staggering 55 percent due to declining sales and lower costs for its cars.
Last night, Tesla announced that the company had sales of $21.3 billion in the first quarter of 2024. reports that Guardian. These revenues represented a nine percent decline compared to the same period last year, and the company’s profit for the quarter was $1.1 billion – 55 percent less than the same period in 2024.
Despite the nature of the income Cuts that most bosses would fear for their jobs, Tesla strangely saw its stock price rise after last night’s investor call. That’s because the company has outlined its ambitions to change things, which includes a renewed focus on artificial intelligence, autonomy and perhaps even an affordable electric vehicle. As the Guardian explained:
Still, the report offered encouraging announcements for investors, including previews of a ride-hailing app that will be integrated into Tesla products. The company said it expects to launch new vehicle models sooner than previously announced, citing a robotaxi network that is in the works.
The company has more than doubled its AI computing power – the complexity of its intelligent software – in the last three months and invested $1 billion in AI infrastructure over the same period.
There was news about a cheaper Tesla highlighted by the edgeIt said the company planned to “introduce new and cheaper products.” A lower-priced Tesla would be part of the company’s next generation, which will use a new EV platform that shares some similarities with the company’s current platform, The Verge reports.
Many had fears that the affordable Tesla had been abandoned just a few weeks ago, but the mention in last night’s earnings release was enough to reassure investors, sending the company’s stock price up to $144 per share at the end of the day, up from $140, which she had rated on Monday.
2nd gear: Layoffs continue at Tesla
This small increase in the share price was not it enough to secure Tesla’s futureand the company will continue is planning to cut staff around the world, with jobs in Texas and California.
According to the EV manufacturer has cut its entire marketing team Yesterday, Tesla confirmed that it plans to cut 2,700 jobs in Austin and more than 3,300 in California. reports CNBC. The cuts are part of a massive restructuring effort at Tesla that will see the number of employees reduced by up to 20 percent. As CNBC explains:
Musk said in an internal memo last week that Tesla would cut more than 10% of its global workforce as the electric vehicle maker faces declining sales and increased competition. He did not say which departments or locations would be most affected.
“As we prepare the company for our next phase of growth, it is critical to examine every aspect of the business with a view to reducing costs and improving productivity,” he wrote. A WARN notice later filed in New York indicated that 285 jobs would be eliminated at a factory in Buffalo.
As of December 2023, Tesla employed more than 140,000 people around the world, reports CNBC. If Tesla plans to reduce its workforce by 20 percent, that means up to 28,000 people will be out of work at its facilities around the world.
In addition to the job cuts here in the USA, Automotive News Europe also reports that cuts are in sight at the Tesla factory in Germany. The website reports that up to 400 jobs could be at stake there.
3rd Gear: Boeing crash victims want justice
Speaking of companies that are currently having a difficult time, let’s take a look American aircraft manufacturer Boeingwhich was met with numerous high profiles mechanical failures in recent months. Now the Seattle-based company is facing a legal challenge from the families of victims who died in two high-profile accidents.
Families of people killed in Boeing 737 MAX crashes in 2018 and 2019 put pressure on the US Department of Justice to prosecute the aircraft manufacturer, reports Reuiters. The call for prosecution comes as the 737 Max range continues to be plagued by quality problems that led to a side panel being torn off a plane at altitude earlier this year.
Now, relatives of those killed in the two accidents and their lawyers are expected to argue that Boeing violated an agreement to overhaul its compliance program The 737 Max crashes, in which 346 people died. As Reuters explains:
Federal prosecutors agreed to ask a judge to dismiss criminal charges against Boeing as long as the company complies with the terms of the contract for three years.
But during an Alaska Airlines flight on Jan. 5, just two days before the 2021 agreement expired, a panel on a new Boeing 737 MAX 9 jet exploded. Justice Department officials are now reviewing that incident as part of a broader investigation into whether Boeing violated the deal, known as the Deferred Prosecution Agreement (DPA), two people familiar with the matter told Reuters.
“What we are telling the DOJ is: Throw away the DPA,” said Nadia Milleron, whose daughter Samya Stumo died while traveling aboard the Ethiopian Airlines Boeing 737 MAX 8 that crashed in March 2019. “We want them to think about it.” themselves: That’s too much. There has to be responsibility.”
Family members are calling for independent monitoring Production practices at Boeing. This is the only way to ensure that the aircraft manufacturer complies with the safety and quality measures set out in the 2021 agreement.
4th Gear: Polestar losses weigh on Volvo’s profits
However, it’s not all bad news today, as it turns out bold Swedish car manufacturer Volvo simply means to plod along quietly, loving life and doing it well. The wagon-driving car manufacturer just posted a profit of $434.78 million, despite losses at its electric vehicle subsidiary Polestar.
Profit of more than $400 million in the first three months of 2024 marked a slight decline for Volvo. But Automotive News Reports that this is due to “lower income and Losses in the Polestar business.” as the site explains:
This was below consensus from JPMorgan, which had expected operating profit of 5.93 billion crowns.
However, adjusted operating income, which excludes joint ventures, associates and one-time items, rose 8 percent to 6.8 billion Swedish crowns ($629.27 million).
“Overall, a good start to the year, with Volvo reporting double-digit sales growth and further increasing production of the EX30,” said JPMorgan, referring to the unit numbers.
The strong demand Volvo is seeing for its cars is expected to last until 2024 Delivery of the new EX30 EV begins in even more global markets. According to Jim Rowan, the company’s boss, this car will be an important factor in Volvo’s growth targets for the year.
Rowan said the company is on track to meet its 15 percent growth target for 2024, which he said would be supported by high margins on electric vehicles.