- Tesla sold 386,810 cars in the first quarter of 2024.
- That’s about 90,000 less than investors expected.
- Shares fell more than 7% in early trading following the news.
Tesla delivered fewer cars to its customers in the first three months of 2024 than Wall Street expected, it announced Tuesday, marking one of the first year-over-year sales declines in the company in almost four years.
About 386,800 cars were sold in the first quarter, compared to an estimated average of 477,000, according to UBS. This represents a decrease of 20.1% compared to the last quarter of 2023 and 8.4% compared to a year ago. This is also the first year-over-year decline in quarterly deliveries since 2020.
Electric vehicle sales have struggled across the industry, and Elon Musk’s automaker is no exception to the economic forces. Over the past year, Tesla has significantly reduced the prices of its cars, hurting its sales-chasing profits.
“Although Tesla announced it would raise prices in the US and China starting in April, we view this as an attempt to boost sales in March, rather than a sign of solid demand,” warned Deutsche Bank customers ahead of the release of delivery figures. .
Tesla’s future profit growth relies largely on an unannounced new car at a much cheaper price – and continued sales of its Cybertruck.
Tesla has also increased pressure on its staff to offer its fully autonomous driving software to customers when they take delivery of a car. The $12,000 add-on (or $199 per month) is a major revenue generator.
In the past, Musk has highlighted the importance of Tesla’s autonomous driving plans. During an earnings conference call last year, Musk said Tesla could theoretically sell its cars at no profit due to the technology.
“We are the only ones making cars that we could technically sell for no profit right now, and which would then generate massive economic profits in the future through autonomy,” Musk said in April 2023. “I don’t I don’t know how many of you will. I appreciate the depth of what I just said, but it’s extremely meaningful.
That is, as long as Tesla can escape the growing scrutiny of safety regulators, who have forced a massive recall in March 2023.
businessinsider
