Tesla, Inc., posted sales figures that showed its first quarter-over-quarter drop since 2020. Today, the stock is down five percent, and by 34 percent over the last six months.
Due to the increased competition, and a decreased appetite by customers, sales of EVs are down.
The Austin-based company reported Tuesday that it delivered 386,810 vehicles worldwide between January and March. The company sold almost 9% fewer cars in the first quarter of this year than it did last year when it sold 423,000.
The Wall Street analysts surveyed by FactSet who were expecting Tesla Inc. to deliver 457,000 cars, did not meet their expectations. This represents a 15% shortfall.
Tesla stock continues to get HAMMERED…
Lower than expected deliveries.
Is this a problem with Tesla?
The car market?
The EV Market?Or is it all 3? pic.twitter.com/uhCxwHiowt
— Brandon | Car Questions Answered (@CQA_Brandon) April 2, 2024
As we previously reported, the EV market has recently been facing some difficulties.
Others, however, may not be ready to use. Some people may not be ready for use.
Tesla predicted the news when it sent its investor letter in January.
The company attributed its decline to the gradual introduction of an updated Model 3 sedan at its Fremont, California, factory as well as the closures of plants due to shipping diverts on the Red Sea, and an arson attack that knocked out power in its German facility.
In a letter sent to investors in early January, Tesla forecasted a “significantly” lower growth in sales for this year.
Even though the sales figures were expected to drop, analysts were shocked at the final results.
Dan Ives, a Wedbush analyst who has been bullish on Tesla’s stock for years, wrote in a note: “This 1Q disaster is difficult to understand.” Ives, in a note to investors, said that the sales drop was much worse than expected.
While this isn’t a fatal blow for the company, CEO Elon Musk has a history of turning things around and could do so again. However, in the short term, it’s another indication that the EV product hasn’t yet reached a point where the general public is eager to embrace electric cars.
