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Tesla’s first quarter deliveries Investors are nervous ahead of product launches next week, which are expected to be relatively weak due to increased competition and lagging demand.
EV manufacturer led by Elon Muskis bracing for a slowdown in 2024 after years of rapid sales growth, with analysts lowering the company’s first-quarter delivery forecasts to account for the slowdown. Tesla delivered 422,875 vehicles in the first quarter of 2023, but this level may be difficult to reach.
Wedbush Securities said delivery expectations fell from about 475,000 to 425,000 vehicles as a “perfect storm of demand issues” hit the company’s sales. These headwinds have resulted in Tesla stock struggling, declining 29.2% year-to-date through Friday.
“The biggest and most worrying issue for Tesla (and its investors) remains China. Increasing EV competition and a protracted price war have made this key market extremely difficult for Tesla over the last year, especially in the last quarter. “, said Managing Director Dan Ives. said senior equity analyst Wedbush Securities in a note to investors.
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A new EV model was displayed at a Tesla store in Shanghai on Tuesday. (Costfoto/NurPhoto/Getty Images via Getty Images)
Ives said Tesla’s delivery numbers “will not be a moment of celebration for the bulls, but rather a band-aid end-of-the-quarter for the company’s investors.”
He said that while Tesla is experiencing a lull between periods of growth, investors are getting impatient, and that Musk’s discussions about developing artificial intelligence (AI) tools outside of Tesla and issues with the company’s board of directors. He wrote that a Delaware court’s invalidation of Musk’s rights is “making the situation even worse.” Compensation package and “Currently, Incorporate in Texas. ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 175.79 | -4.04 | -2.25% |
Mr. Ives has previously held negative opinions about Tesla, but this time his opinions have been justified as growth has slowed and profit margins have been compressed amid competition from low-cost Chinese EV makers such as BYD. He explained.
Xiaomi, one more thing Chinese EV rivalTesla will launch a new electric sedan on Thursday that is expected to reduce the price of the Tesla Model 3 by about $4,000, Barron’s reports.
Tesla’s car deliveries are expected to slump due to competition with China and weak demand
Tesla CEO Elon Musk will call for a vote on moving the company’s founding state from Delaware to Texas after a court invalidates his $56 billion pay package. Stated. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
Mr. Musk has aggressively discounted Tesla EVs starting in the second half of 2022 in an effort to boost sales amid a high interest rate environment, and the cost of electric vehicles is rising. car payment For our customers. These cuts have helped support demand, but at the expense of the company’s profit margins.
Musk said the price cuts are necessary to maintain demand for Tesla cars and keep production facilities running as efficiently as possible. Some of these discounts are temporary adjustments to pricing, like when Tesla cut prices by $1,000 on rear-wheel-drive Model Y and long-range models in February, which expired in early March. .
In response to Tesla’s post hinting at price changes in March, Musk wrote on X (formerly Twitter), “This is an inherent challenge in manufacturing. However, consumer demand is seasonal.”
Tesla CEO Elon Musk visits Giga Berlin as production resumes after arson
Tesla’s Gigafactory near Berlin experienced production suspensions earlier this year due to supply chain problems and an arson attack. (Patrick Proulle/Photo Alliance via Getty Images/Getty Images)
Tesla’s production facilities also experienced some disruptions this quarter.
Attacks by Houthi militants on ships in the Red Sea and Gulf of Aden have caused ships to be rerouted from the region and the Suez Canal to around the Cape of Good Hope at the southern tip of Africa.
This led to longer shipping times, and Tesla suspended most car production at its Gigafactory near Berlin from January 29 to February 11 due to parts shortages.
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Tesla’s Gruenheide factory also ceased operations for nearly a week in early March due to an arson attack by environmental activists. power transmission A facility that supplies electricity to a factory.
