Quarterly Tesla Deliveries Decline For The First Time In Nearly 4 Years

(CTN News) – The electric vehicle company Tesla (TSLA.O), opening a new tab on Tuesday, reported a decline in quarterly deliveries for the first time in nearly four years, which missed expectations on Wall Street.

As a result of price cuts failing to stimulate demand in a highly competitive market, some considered the performance “ugly”.

On Tuesday, during midday trading, Elon Musk’s company shares were down 5.3% to $165.98 at midday. This means that the company’s market value has declined by around $30 billion over the last few days.

During the year to date, this company’s shares have fallen by about 33% as of this writing.

As the company prepares for a slowdown in 2024 following years of rapid sales growth that helped turn Tesla into one of the world’s most valuable automakers, the company is expecting a slowdown in sales.

It has taken the EV maker some time to refresh its aging models because high interest rates have sapped consumer appetite for big-ticket items and rivals in China, the world’s largest auto market, are rolling out cheaper models compared to its own.

In the first quarter, Tesla delivered 386,810 vehicles compared to 433,371 in the same period a year ago, a decrease of 8.5% from a year earlier. The company produced 433,371 vehicles in the same period of time.

Visible Alpha conducted a poll of 18 analysts and found that on average, the Wall Street was expecting Tesla to deliver 454,200 vehicles by the end of the year, according to their survey.

SEE ALSO:

Tesla Hikes Prices Despite Cuts And Incentives From Rivals