Tesla's first quarter deliveries fell way short of estimates, sending the shares down sharply on Tuesday and casting a cloud on electric-vehicle demand.
Elon Musk's EV maker produced over 433,000 vehicles during the first three months of the year, down 12% from the prior quarter and it delivered 387,000 down 20% from the prior quarter, the company reported. Analysts had expected the automaker to deliver over 400,000, according to estimates.
Smithtown, N.Y.: New Tesla electric vehicles fill the car lot at the Tesla retail location on Route 347 in Smithtown, New York on July 5, 2023. This location is one of five Tesla-owned centers throughout the state. (Photo by John Paraskevas/Newsday R
The latest deliveries' snapshot is another headwind for shareholders with Tesla shares down over 30% so far this year.
Tesla is facing competition from U.S. automakers, including Ford, GM and Mercedes, as well as EV makers from China. This as EV demand wanes in favor of good gas-powered vehicles.
Ford Motor Co. earlier this month slashed prices on its Mustang Mach-E electric SUV by up to $8,100 after sales fell sharply in January. Ford also said in January it would reduce production of its F-150 Lightning pickup truck, cutting production at its Michigan Rouge Electric Vehicle Center to one shift starting April 1.
While the German luxury brand disclosed it won't meet its 2025 deadline to have EVs, including hybrids, make up 50% of all sales. Lackluster demand for electric-powered cars has delayed that goal until at least 2030, the company announced in February.