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Tesla 1Q profit falls 55%

Tesla’s first-quarter net income plummeted as falling global sales and price cuts sliced into the electric vehicle maker’s revenue and profit margins.

“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the investor letter said. In a note to investors Monday, Bank of America Global Research analyst John Murphy wrote that Tesla’s shares have been under pressure since the start of the year due to weaker EV sales, and production that exceeds demand. Early last year the National Highway Traffic Safety Administration made Tesla recall its “Full Self-Driving” system because it can misbehave around intersections and doesn’t always follow speed limits.

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