Tesla sales fall for the first time in four years – 04/02/2024 – Market

Tesla reported a quarterly drop in car sales for the first time in nearly four years, below Wall Street estimates, in a sign that the effects of price cuts are easing as the automaker faces growing competition and higher demand. weak.

The automaker’s shares fell 5.7% in the market on Tuesday, adding to the nearly 30% decline in value so far this year.

The world’s most valuable automaker delivered around 386,800 vehicles in the three months to March 31, a 20.2% drop from the previous quarter, when it produced 433,300 cars.

On average, Wall Street expected Tesla to sell 454,200 units, according to 18 analysts surveyed by Visible Alpha.

The electric car manufacturer’s deliveries fell 8.5% compared to the previous year. The last time a drop in sales was recorded was in the second quarter of 2020, when the pandemic forced the automaker to pause production.

The company said the drop in volumes was partially due to efforts to prepare its Fremont factory in California to increase production of the updated “Model 3” and closures at its Berlin plant as a result of shipping diversions caused by the conflict in Red Sea.

Tesla has faced intense competition from automakers in China, including market leader BYD — which overtook the US company as the biggest electric vehicle maker in 2023 — and newcomer Xiaomi.

However, the company led by Elon Musk managed to stay ahead of BYD in the quarter, which sold around 300,000 electric vehicles.

Tesla delivered 369,700 Model 3s and Model Ys, and around 17,000 units of other models, including the Model S sedan, the Cybertruck and the Model X premium SUV.

In January, Tesla warned of “notably lower” sales growth this year as it focuses on producing its next-generation electric vehicle.