Electric vehicle (EV) company Tesla on Tuesday announced that first-quarter sales fell 9% from a year earlier.
The sales decline is Tesla’s biggest since 2012, as the company faces declining sales and increased competition.
Tesla cut the prices of three of its best-selling cars (Model X, Model Y, and Model S) by $2,000 each on Friday, just weeks after reporting a significant drop in first-quarter sales.
Vehicle deliveries decreased by 8.5% year-on-year, from 423,000 in the first quarter of 2023 to 386,810 in the same three months of 2024.
The EV company blamed the decline in sales and profits on recent shipping difficulties in the Red Sea, an arson attack on a factory in Germany, and increased production of the new Model 3 at its California factory.
Last week, Tesla also announced plans to cut 10% of its workforce, or about 14,000 people, prompting CEO Elon Musk to say, “We’re a lean, innovative company that’s focused on It enables a greedy attitude towards the cycle of growth stages.”
The company’s stock price has fallen more than 40% since the beginning of the year.
But Tesla stock soared in after-hours trading on Tuesday after the company announced plans to bring forward the production schedule for new cars, including more affordable models.
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