$Tesla Motors(TSLA)$ vehicle production declined around 1.7% from a year earlier and 12.5% sequentially for Tesla, not nearly as steeply as the 8.5% annual drop in deliveries.
Tesla Inc. faced a significant setback in the first quarter, with vehicle deliveries falling short of Wall Street analysts' expectations by a record margin. They reported deliveries of just 386,810 vehicles, falling 14% short of the average estimate and marking its most substantial miss in seven years.
This news sent Tesla's shares tumbling by ~5%, contributing to a 33% decline in 2024, making it one of the S&P 500's weakest performers.
Several factors contributed to this downturn:
1. High interest rates affecting consumer affordability, even after implementing price cuts
2. Transition to an upgraded Model 3 sedan (which along its Model Y SUV, makes up 96% of its deliveries)
3. Disruptions at its Berlin plant
4. Intensifying competition in China's EV market
5. Cybertruck receiving mixed reviews in the US
6. Series of discounts and incentives seemed less effective in boosting sales volumes than in previous quarters
This quarter also saw one of the largest production-to-delivery discrepancies in Tesla's history, with 46,561 more vehicles produced than delivered, indicating potential demand issues. While Tesla doesn't disclose sales data by region, the U.S. and China are its largest markets.
Despite the setbacks, Tesla regained its position as the world's leading EV seller, overtaking China's BYD Co., which sold 300,114 battery-electric vehicles globally in the same period.
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