Elon Musk’s Tesla reported an 8.5% year-on-year decline in deliveries in the first quarter of 2024, the company’s first decline since the pandemic-hit second quarter of 2020. Ta.
CNBC report Tesla released its first quarter vehicle production and delivery report on Tuesday, revealing that the company delivered 386,810 vehicles in the first three months of 2024. The paper said the figure was lower than analysts expected deliveries of 414,000 to 511,000 units. Factset of 11 estimates. Tesla shares fell about 7% in premarket hours and about 5% in late morning trading following the disappointing results.
The decrease in deliveries was partially due to various challenges faced by the company during the quarter. This includes the initial stages of ramping up production of the latest Model 3 at Tesla’s Fremont factory in California and closing the factory. Attacks by Houthi militias on shippers in the Red Sea disrupted the supply of parts to Tesla, temporarily suspending production at its German factory outside Berlin in January. In March, environmental activists set fire to infrastructure near the German factory, causing production to halt due to a lack of power.
In China, Tesla faced fierce competition from domestic EV makers such as BYD and startups such as mobile phone maker Xiaomi. Due to weak sales in January and February, the company cut production of the Model 3 and Model Y at its Shanghai factory and reduced employee schedules.
The company’s challenges have also been exacerbated by mixed reviews of Tesla’s latest model, the goofy Cybertruck, which went on sale in small numbers last December. Additionally, a series of discounts and incentives appear to be less effective at increasing sales volumes than they used to be.
Despite the setbacks, Tesla CEO Elon Musk remains confident that his customers and shareholders will continue to support him, regardless of his politics or inflammatory statements on social media platforms such as X, which he owns. I remain confident that I will remain committed to the brand and the company.
however, Recent research by market intelligence firm Caliber This suggests that Musk’s polarizing personality is shrinking the number of people in the U.S. who want to buy a Tesla. Caliber’s “Consideration Score” for Tesla fell to 31% in February, less than half of its November 2021 high of 70%. The survey also found that 83% of Americans associate Mr. Musk with Tesla, indicating that Mr. Musk’s actions and reputation may be influencing the United States. Brand recognition.
Several marketing, polling, and automotive experts told Reuters, suggesting that controversy over Musk’s increasingly conservative politics and public statements is weighing on Tesla’s brand and demand. Economic concerns, a lack of affordable new models and increased competition from cheaper rivals such as China’s BYD have also been cited as factors putting pressure on Tesla.
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Lucas Nolan is a reporter for Breitbart News, covering free speech and online censorship issues.
