Updated April 2nd, 2024 at 19:10 IST

Tesla misses Q1 delivery targets, shares fall

The company faced stiff competition from both new entrants and established players in key markets.

Reported by: Business Desk
Tesla | Image:X Photo
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Tesla misses delivery target: Electric vehicle maker Tesla disappointed investors on Tuesday as it fell short of market expectations for first-quarter deliveries. The company faced stiff competition from both new entrants and established players in key markets, compounded by soft demand for its older electric car models.

Tesla shares dropped 6.9 per cent before the bell, extending their year-to-date decline to nearly 30 per cent.

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Despite being the world's most valuable automaker, Tesla delivered approximately 386,810 vehicles in the first quarter, marking a 20.2 per cent decline from the previous quarter. This figure fell short of Wall Street's average expectation of 454,200 vehicles, based on a poll of 18 analysts by Visible Alpha.

Compared to the same period last year, Tesla's deliveries were down 8.5 per cent. This marks the first quarterly drop in deliveries in four years, indicating that the impact of its price cuts may be fading. Tesla manufactured 433,371 vehicles during the January–March period.

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The company delivered 369,783 Model 3 and Model Y vehicles, along with around 17,000 units of other models, including the Model S sedan, Cybertruck, and Model X premium SUV.

In January, Tesla had already warned of "notably lower" sales growth for the year as it shifted its focus to the production of its next-generation electric vehicles.

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(with Reuters inputs)

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Published April 2nd, 2024 at 19:10 IST