Tesla’s first quarter sales were disappointing and investors continued to punish the company harshly

If the first quarter of 2024 was one to forget for Tesla, the second hasn’t started so well. The electric car company has just announced that it has delivered 386,810 vehicles In the first three months of the year, 8.5% less than the same period in 2023. This is Tesla’s first year-over-year sales decline since the early days of the pandemic four years ago.

On average, analysts surveyed by Bloomberg have estimated that Delivery will be 453,964 vehicles In the first quarter. For experts, the key was for the company to deliver more than the 422,875 cars it managed in the first three months of 2023 and avoid the first year-on-year decline since the second quarter of 2020, something that has not been achieved.

Following the publication of the data, Tesla shares fell nearly 5% on Wall Street. This prolongs the company’s bad position on the stock market as its shares had already fallen 29% in the first quarter of 2024, its biggest loss since the end of 2022.

“We believe volume and earnings concerns could further weaken investor confidence and weigh significantly on the stock,” Deutsche Bank’s Emmanuel Rosner, who cut his shares last month, wrote in a March 28 report. Can exert pressure.” Delivery is estimated only twice every two weeks.

Tesla, back with promotion

Elon Musk may not have helped sales in the last week of March. As reported by Bloomberg, the CEO has implemented a new directive, which he acknowledged will slow down the sales process, requiring all North American customers to take short drives to test the driver-assistance feature. Will require what Tesla has misleadingly marketed as fully autonomous driving.

Tesla began offering a one-month free trial of the feature, otherwise a subscription costs $199 per month or $12,000 for a purchase. This was one of several benefits offered by the company to attract consumers, which also included a temporary discount of US$1,000 and free charging service. Tesla also increased advertising on Google and X, the social media service owned by Musk.

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In January, Musk warned investors that the company was “between two major waves of growth.” The first was powered by the Model 3 sedan and Model Y sport utility vehicle, and the next are expected to arrive with the launch of the next generation, with production of the more affordable vehicle scheduled to begin late next year.

With the next-generation car still a ways away, some analysts fear that Tesla’s prospects for “significantly lower” growth rates this year may actually result in no growth in the first quarter.

Tesla reclaims world power ‘crown’

Tesla does not break down quarterly vehicle sales by region, but the United States and China have long been its biggest markets. The company manufactures the Models S, X, 3, and Y in Fremont, California; And in Shanghai, the Model 3 and Y. It also produces the Model Y at its plants on the outskirts of Austin and Berlin. The Model Y sport utility vehicle and Model 3 sedan accounted for 96% of deliveries in the fourth quarter.

Tesla expanded its offering with the introduction of the stainless steel-clad Cybertruck vehicle in the US late last year. The company did not disclose how many Cybertrucks it produced and distributed.

Despite the challenges, Tesla managed to regain its title as the world’s largest electric vehicle seller after being overtaken by Chinese company BYD late last year. In the first quarter, BYD sold 300,114 battery electric vehicles worldwide, the automaker said on Monday. Including hybrid cars and other new energy cars, the Chinese company sold 626,263 units during the period.

Note prepared with information from EFE and Bloomberg.

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