Tesla Misses First-Quarter Delivery Targets Amidst Growing Competition and Sluggish Demand
Tesla experienced a shortfall in first-quarter deliveries, failing to meet market expectations amidst growing competition and decreased demand for its older electric vehicle models.
The automaker’s shares dropped by 6.9% in pre-market trading, contributing to a nearly 30% decrease in value this year.
During the quarter ending March 31, Tesla delivered approximately 386,810 vehicles, a 20.2% decline from the previous quarter and an 8.5% decrease from the same period last year.
This marked Tesla’s first quarterly drop in deliveries since the second quarter of 2020, when the COVID-19 pandemic led to production shutdowns.
Analysts had anticipated Tesla would deliver 454,200 vehicles, based on a Visible Alpha poll of 18 analysts.
The decrease in deliveries also suggests the diminishing impact of Tesla’s recent price cuts.
Over the January-March period, the company produced 433,371 vehicles but delivered 369,783 units of Model 3 and Model Y, along with approximately 17,000 units of other models, including the Model S sedan, Cybertruck, and Model X SUV.
Furthermore, in January, Tesla cautioned investors about a “notably lower” sales growth expectation for the year, as it shifts focus towards the production of its next-generation electric vehicle.
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