Tesla shares drop after deliveries fall more than expected
Tesla shares have dipped after the electric car company revealed that it had missed first-quarter delivery estimates.
Tesla sold just under 387,000 vehicles in the first quarter, down 20% from the previous quarter and 8.5% from the previous year. It was the company’s first year-over-year sales drop since the early days of the COVID-19 pandemic in early 2020.
The final count falls short of Wall Street’s expectations for 457,000 deliveries, according to an average based on 11 analysts’ forecasts provided by FactSet.
Though analysts had been expecting a poor first quarter from the company, the figures were “an unmitigated disaster” that is “hard to explain away,” according to a note Tuesday from Wedbush analyst Dan Ives.
“We view this as a seminal moment in the Tesla story,” Ives said in his note, adding that “some darker days could clearly be ahead that could disrupt the long-term Tesla narrative.”
Tesla shares closed down 4.9% at $166.63 Tuesday.
What are the delivery numbers?
According to a news release Tuesday:
⬤ Tesla produced 412,376 Model 3 and Model Y vehicles and 20,995 other models in the first quarter for a total of 433,371 vehicles.
⬤ Tesla delivered 369,783 Model 3 and Model Y vehicles and 17,027 other models in the first quarter for a total of 386,810 deliveries.
Why are Tesla deliveries down?
The EV company blamed the decline on the early phases of a production ramp-up for the updated Model 3, as well as factory shutdowns caused by conflict in the Red Sea and an arson attack at a factory in Berlin.
Consumer sentiment may also play a role. Reuters reported Monday that a recent survey by market intelligence firm Caliber found the number of would-be Tesla buyers in the U.S. is shrinking in part because of CEO Elon Musk’s polarizing persona.
The billionaire – who is active on X, the social media company he purchased in 2022 for $44 billion – has come under fire for various posts on the platform. In November, the White House condemned Musk for amplifying an antisemitic post. Musk has denied being antisemitic.
A slowdown in consumer EV demand is another headwind, as well as rising competition.
Despite missing estimates, Tesla sold enough vehicles in the first quarter to reclaim the title of world’s largest EV seller from BYD Co., a Chinese automaker that also saw sales decline in the first quarter.