Tesla stocks sinks more than 5% due to steep dip in Q1 sales

According to Austin-based Tesla, it shipped 386,810 cars globally between January and March of this year, which is about 9% fewer than the 423,000 it sold during the same period the previous year.

Advertisement

Due to a steep reduction in sales in the March quarter, the stock of Tesla Inc., a manufacturer of electric vehicles (EVs), fell more than 5% on Tuesday.

At lunchtime on Tuesday, shares of the Elon Musk-led business were down 5.3% at USD 165.98. The market worth of the corporation dropped by almost USD 30 billion.

According to Austin-based Tesla, it shipped 386,810 cars globally between January and March of this year, which is about 9% fewer than the 423,000 it sold during the same period the previous year.

Sales of electric vehicles decreased globally, competition grew, and price reductions were ineffective in attracting new customers, resulting in a decline in Tesla’s sales.

The plant shutdowns caused by shipping diversions in the Red Sea, the introduction of an upgraded Model 3 sedan at the Fremont, California, plant, and an arson attempt that destroyed the electricity to its German production were some of the reasons given by the firm for the fall.

The number of Model 3 and Y deliveries fell by 10.3% on an annual basis to 369,783. Other model sales, including the new Cybertruck and the aged X and S, increased by nearly 60% to 17,027.

Tesla lowered the price of several models in the US by up to USD 20,000 last year.

Tesla produced 10.7% more cars in the first quarter than it sold. The maker of electric vehicles had forecast “notably lower” sales growth this year in January.

It briefly reduced the price of the Model Y, its best-selling car, by $1,000 in March. The company’s profit margins decreased as a result of those pricing cutbacks. Tesla’s sales figures also caused its US EV competitors’ stock prices to decline. Lucid saw a 4.4% decline in shares, while Rivian’s sank more than 5%.

Advertisement