Tesla Q1 auto deliveries fall 8.5%, shares drop sharply

Apr2,2024



New York: Tesla reports 8.5% decline in first quarter auto deliveryMissing estimates from key analysts and putting pressure on stocks.
Elon Musk's auto giant reported 386,810 deliveries in the period, reflecting a weak sales market in China, where it faces heavy competition from local electric vehicle (EV) makers.
The automaker's output fell nearly 1.7% to 433,371.
Analysts are bracing for a tough first quarter for high-flying Tesla, which has reportedly cut production in China due to the rise of BYD and other Chinese automakers.
Tesla was also hit in the quarter at its lone European factory in Germany, which was targeted in a suspected arson attack on nearby power lines in early March, affecting production.
At the same time, the growth in EVs in other markets, including the United States, has prompted Tesla to cut prices, reducing the company's profit outlook.
Still, Tesla's data on Tuesday disappointed market watchers.
“Although we were anticipating a bad 1Q, this was an unexpected disaster,” said Wedbush analyst Dan Ives.
“We see this as a critical moment in the Tesla story for Musk to either turn it around and reverse the black eye 1Q performance. Otherwise, there could clearly be some dark days ahead that disrupt the long-term Tesla narrative.” can do.”
Shares fell 5.2% in early trading.



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