ImportantExclusive
TSLA: Tesla Delivers Under 390,000 EVs in First Quarter, Sliding Below Estimates
China slowdown and fast-rising competition were to blame as price cuts weren’t enough to lure in EV buyers in the first three months of 2024.
Key Points:
- Tesla delivered 386,810 vehicles in Q1.
- Competition from China looms large.
- Price cuts didn’t go a long way.
- Tesla TSLA delivered 386,810 new vehicles to customers worldwide in the quarter ended March. The figure dipped below estimates for 458,000 despite maneuvers—like price cuts—from the EV maker to steer customers into its many stores around the world. Tesla shipped a record 485,507 new cars in the fourth quarter of 2023. Meanwhile, looming competition from China is expanding its footprint in the EV market. Shares of Tesla dipped 7% ahead of the regular session on Tuesday.
- Chinese homegrown EV manufacturers such as BYD 1211 and Xiaomi 1810—the newest entrant in the EV sector—are rolling out cheaper models and capturing a broader market share. In contrast, Tesla has fallen victim to a lack of innovation, inspiration and creativity with no new ideas on revamping its slick-looking electric cars.
- Shares of Tesla have lost their mojo this year with a 30% slump in the first quarter, turning the stock into the worst performer in the S&P 500. With that, Elon Musk, who holds a 20% stake in the company, has waved goodbye to a $40 billion chunk of his wealth. The big drop prompted analysts to trim their earnings views by 24% to $2.90 a share, down from $3.80. Tesla reports earnings on April 24.