Elon Musk on Wednesday said it is time to "reorganise" Tesla as the electric car company registered $1.1 billion in net income and $21 billion in revenue, down 9 per cent from $23.3 billion from the year-ago period.
Tesla laid off over 10 per cent of its workforce this month and Elon Musk said the move was necessary for the company's "next phase of growth".
"EV adoption rate globally is under pressure and a lot of other auto manufacturers are pulling back on EVs and pursuing plug-in hybrids instead," Elon Musk told analysts over the earnings call.
"We believe this is not the right strategy. And electric vehicles will ultimately dominate the market," the billionaire added.
In the shareholder note, Tesla said it's focused on leveraging its existing manufacturing footprint to introduce new and more affordable products.
The company said that it has "updated future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025".
Elon Musk said the company will showcase its purpose-built robotaxi or Cybercab in August.
"Regarding AI computing, over the past few months, we've been actively working on expanding Tesla's core AI infrastructure. For a while there, we were training constrained in our progress," he told analysts.
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