Tesla cars are no longer a rarity on German roads. However, the breakthrough has come at a high cost. The electric car hope has burned through billions on its way to the top. At the same time, Tesla has its own charging network and a brand with a lot of influence. But is that enough?

We’ll do the check for you! Tesla Motors was founded in 2003 and in 2008 became the first company to launch a car with a lithium-ion battery: the Tesla Roadster, which was produced until 2012. The current product range includes the Model S sedan, the sporty Model X SUV, and the Model 3 and Y for the mass market. Tesla has been listed on the stock exchange since 2010.

Discount battle comes at a bad time In the first 9 months, Tesla increased its revenue by 25% to $71.6 billion. Car sales increased by 5% compared to the previous quarter. This year, 1.32 million vehicles were delivered. A 40% increase was achieved in the sale of self-produced energy, generating $4.5 billion in revenue. Earnings per share fell by 20% to $2.04. This represents a 44% decline compared to the previous quarter. Production of the Model S/X decreased by 31%, while it increased by 20% for the Model 3/Y. The number of Superchargers increased by 31%.

With the interim results, CEO Elon Musk admitted that he had to put his growth plans on hold for the time being. He doesn’t want to drive into the crisis at full speed. After the results were announced, prices were lowered in the home market of the USA. The Model 3 is now offered for $1,250 less. The loss in revenue is expected to be offset in the future through services such as software updates. The increased interest rates, which make investments significantly more expensive, are seen as a major obstacle to growth.

As a result, the factory in Mexico is being built at a slower pace for cost reasons. The Cybertruck, which was planned to be launched this year, has also been postponed to 2025.

Tesla will have to stretch itself further From 2027, a new Tesla with a target sales price of $25,000 is expected to roll off the production line at the Gigafactory in Brandenburg. This year, a total of 1.8 million vehicles are expected to be sold. The company is not giving any outlook on profits.

In the long term, cost savings and AI are expected to lead to higher profits. These plans show that Tesla will have to stretch itself further to maintain its position. The price wars are also taking their toll. Investors will have to wait a long time for a dividend from Tesla.