#Tesla #disaster #sales
Shares fell more than 4% on the news. Wedbush Securities analyst Dan Ives called the update “a complete disaster … that’s hard to explain.” Tesla’s shares have already fallen over the past year, reflecting the challenges of higher interest rates making its cars more unaffordable and rivals ramping up their own electric vehicles, the BBC reports.
In response, the company repeatedly cut prices. But even so, demand in key markets like China is weakening as rivals like BYD gain. Tesla overtaken by China’s BYD in late 2023
Tesla’s problems have deepened in the first three months of this year. Houthi attacks in the Red Sea led to supply disruptions that temporarily closed its factory in Germany, which was later hit by a suspected arson attack. Ives said the numbers showed the first quarter was a “disaster hitting a brick wall” for the company, adding to the pressure on Mr Musk.
“This is the turning point for Tesla to get through this tumultuous period, otherwise there could be troubling days ahead,” he said.
The company said first-quarter production fell about 1.6 percent year over year, from 439,701 vehicles in 2023 to 433,371 in the same period this year.
However, shipments have been hit more significantly, falling by more than 8% year-on-year.
This marks the first annual decline for any quarter since 2020. Deliveries are down 20% from the last quarter of 2023. The drop comes as car companies across the industry scale back their ambitions for electric cars, warning of weaker-than-expected demand. However, most forecasters still expect EV sales to grow significantly this year.
Tesla also faced company-specific problems. Its driverless car software, which it claims will unlock a new wave of growth, is also under scrutiny, with safety officials examining the firm’s powertrain and other areas.
Translation and editing by FrogNews
