Teslas’s proffit streak it’s over

This Wednesday, Tesla held last quarter earnings call to investors and the news were no positive, as we expected

After four months of profits, the company said that last quarter it suffered a loss of $702 million last quarter. The revenue from the same period was down 37% compared with the previous quarter.

Investors were already expecting a decrease in revenue and profit. The stock had a slight fall after the news.

The reasons behind the lousy quarter are the fact that the $7,500 federal credit was cut in half and big brands like Porsche, Audi and Mercedes are starting to enter the market.

“None of these issues, by themselves, would cause the severe drop in sales and revenue Tesla experienced in Q1, but the combination was powerful,” Brauer wrote in an email Wednesday evening.

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