Tesla’s (NASDAQ: TSLA) first-quarter 2024 earnings report showed weaker performance than expected. Quarterly revenue amounted to $21.3 billion, significantly below the Bloomberg consensus of $22.3 billion. Tesla’s EBIT (earnings before interest and taxes) of $1.578 billion in the first quarter also fell short of the consensus expectation of $1.734 billion.

The most concerning metric highlighted by JPMorgan was Tesla’s free cash flow, which plummeted to -$2.531 billion in the first quarter, much worse than JPMorgan’s estimate of -$1.306 billion and significantly below the company’s compiled consensus of -$406 million. This steep decline was attributed to a record accumulation of unsold vehicles, with Tesla producing approximately 47,000 more vehicles than it managed to sell in the first quarter of 2024, despite ongoing price reductions. At the same time, according to JPMorgan, the pressure on the company may decrease in the short term due to the announcements of accelerated introductions of Robotaxi and new products.