1. Tesla experienced a 20% drop in deliveries from the previous quarter and an 8% drop from the same time last year.
2. This is the first time since 2020 that Tesla has seen a year-over-year drop in quarterly deliveries.
3. Tesla attributed the drop in deliveries to various factors, including production ramp for the updated Model 3, an arson attack at its Gigafactory, and supply chain issues from the Red Sea conflict.
Tesla saw a roughly 20% drop in quarterly deliveries compared to the previous quarter, marking the first time since 2020 that the company has experienced a year-over-year decline in deliveries. This news caused Tesla shares to drop more than 5% and plummet nearly 30% over the past year. Analysts like Dan Ives of Wedbush Securities called the first quarter performance an “unmitigated disaster” and highlighted the need for CEO Elon Musk to turn things around to avoid further disruption in Tesla’s long-term narrative.
Tesla attributed the decrease in deliveries to issues such as production ramp for its updated Model 3, an arson attack at its Gigafactory in Berlin, and disruptions in the supply chain due to the Red Sea conflict. Despite the challenges, Ives remains positive about Tesla’s long-term prospects and maintains an outperform rating for the company.
Challenges faced by Tesla also include softening electric vehicle demand and increased competition in the Chinese market from automakers like BYD. In response, Tesla has been cutting prices and promoting its latest Full Self-Driving software, available as an add-on for customers. However, Musk’s polarizing behavior has caused a decrease in potential customers in the US, with a recent report showing a decline in interest in purchasing Tesla vehicles. Overall, analysts and investors are closely watching how Tesla will navigate these challenges to maintain its position in the electric vehicle market.