Tesla’s sales fell last quarter due to increased competition in the electric vehicle manufacturing sector, even as the Austin, Texas-based company lowered prices to attract more buyers.
of the electric car company said From January to March this year, 433,371 vehicles were manufactured and 386,810 were delivered. The number of deliveries is down compared to the first three months of last year, when the company delivered more than 484,000 units.
Tesla said the drop in deliveries was due in part to factory shutdowns due to transportation difficulties in the Red Sea and a power outage at a factory in Germany due to an arson incident.
“The decline in sales was due in part to the early stages of ramping up production of the new Model 3 at the Fremont plant, as well as plant closures due to transportation diversions due to the Red Sea conflict and Gigafactory Berlin arson incident,” the company said Tuesday. ”. .
Tesla has cut prices on some models in 2023 as competition from Chinese and Western automakers increases. Some models have had their prices reduced by up to $20,000. The price of Tesla’s best-selling car, the Model Y, fell by $1,000 last month.
Tesla’s sales decline is due to the slowdown in the electric vehicle market in the United States. Ford has delayed production of its F-150 Lightning electric pickup truck and lowered the price of its Mustang Mach-E electric SUV.
Tesla shares also fell nearly 5% to $166.49 in midday trading Tuesday.
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