American multinational automotive and clean energy company, Tesla, has said it will build cheaper automobiles and win approval for its self-driving software in Europe this year after watching sales decrease at the sharpest rate for a decade.
BBC reports: “Elon Musk’s electric car firm told investors it had started “first builds of a more affordable model in June” while posting a slump in car deliveries and shrinking profits.
“The firm is struggling as it faces cuts to US government support for electric cars, competition from Chinese carmakers and a dent to Tesla’s brand from Musk’s controversial political activities.
“Meanwhile, Tesla told investors that US tariff policy had cost the firm $300m (£221m) over the three months to June and warned of further pain ahead.
“Tesla’s chief financial officer Vaibhav Taneja said the end of a tax credit for buyers of electric cars in the US was also likely to hurt.
“The carmaker did not provide an update on its outlook for the year, warning it was “difficult to measure the impacts of shifting global trade and fiscal policies”.
“Sales fell by 12% to $22.4bn – the biggest drop in at least a decade – after deliveries plunged 14%. Profit shrank by 16% to $1.1bn.”
Photo: Tesla Cybertruck. Tesla
