Tesla declared a 13% drop in vehicle sales in the first three months of the year, making it the worst quarter of the electric vehicle since 2022. This is another sign that the company of electric car formerly high -flying Elon Musk has trouble attracting buyers.
The decline is probably due to a combination of factors, including its aging range, competition from competitors and a reaction to the embrace of Musk’s right policy. It is also a warning that the report on the results of the first quarter of the company later this month could disappoint investors.
Tesla reported deliveries of 336,681 vehicles worldwide during the January-March quarter. Analysts interviewed by FostSet expected much higher deliveries of 408,000. The figure was down sales of 387,000 during the same period a year ago. The drop occurred despite significant discounts, zero funding and other incentives.
Tesla’s stock has plunged about half since he reached a record in mid-December like the expectations of a lighter regulatory touch and large profits with Donald Trump as a president was replaced by the fear that the boycott of musk cars and other problems can hit the company hard. Teslas across the country was vandalized to protest against Musk after having dismantled entire federal agencies in his role as head of the so-called “Department of Effectiveness of the Government”. Musk also made a gesture during a gathering that his distant daughter called “definitely a Nazi salute”.
Despite Donald Trump’s attempts to consolidate business sales with a Tesla presentation in front of the White House and Musk’s insurance to employees that the company has a “brilliant and exciting” future, the drop in sales was striking.
Matt Britzman, a senior actions analyst at Hargreaves Lansdown, “said:” The scale is worse than many people expected.
“There is no way to do so sugar, Tesla’s first trimester delivery numbers are a disappointment, although many investors were already preparing for a soft number,” said Britzman.
Analysts still do not know exactly how much the drop in sales is due to demonstrations or other factors. Sales of electric cars have been slow in general, and Tesla in particular suffer while car buyers prevent the purchase of its best -selling model due to plans for an updated version later this year. Even before Musk associates its role in the government alongside Trump, Tesla had struggled to achieve its delivery objectives. Profit calls and delivery reports did not meet analysts’ expectations throughout 2024.
“The headlines will indicate brand problems, and it would be naive to assume that it is not a factor here, but the key point is missing,” said Britzman. “Deliveries were considerably affected by downtime in factories while Tesla launched the long -awaited refresh version of the Y model, her successful car.”
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The manufacturer of electric vehicles in Austin, Texas, has also lost market share in competitors in recent months as their offers have improved, including those of Byd. The Chinese electric vehicle giant unveiled in March a technology that allows its cars to take care of itself in a few minutes.
Despite what analysts describe as a high demand for the Y model, they expect to see the volatility of the company for a while. The most recent version of Tesla, The Futuriste Cybertruck, has failed to find a general adoption.
The “brand is under pressure,” said Britzman. “It is rare to see the feeling towards a company so closely linked to a polarizing white house, and until Musk takes off its objective from Tesla, the divisions will remain volatile.”
