Tesla renews its leadership in the electric vehicle market and Elon Musk's leadership of the company after reporting a shocking drop in car sales for the first three months of the year as other automakers emerge. posed a question.
According to the company, global deliveries in the first quarter totaled 387,000 units, down 8.5% from 423,000 units delivered in the same period last year. This was the first time since the pandemic began in 2020 that Tesla's quarterly sales declined compared to the same period last year. Sales also fell significantly short of expectations from Wall Street analysts, who had expected a modest increase in sales.
The decline in deliveries is the latest sign that Tesla's dominance in the electric vehicle market is waning. The company's stock price has fallen more than 30% this year, including Tuesday's plunge, as investors worry that the company is not doing enough to face increased competition.
In China, Tesla faces BYD and dozens of other rivals aiming to expand globally. In Europe, established automakers such as Volkswagen and BMW are introducing more attractive battery-powered models. And in the U.S., electric vehicle sales aren't growing as fast as they did a year ago.
Tesla's rivals continue to report increased sales. BYD announced on Tuesday that it sold about 300,000 electric vehicles, an increase of 13% year-on-year. The company also sold 324,000 plug-in hybrid vehicles in the first quarter, an increase of 15% from a year ago.
BYD and other Chinese automakers rapidly introduce new models and often undercut Tesla's prices. These companies are also competing with Tesla in markets outside of China by increasing car exports to Europe, Southeast Asia, and Latin America.
South Korea-based Kia Motors said Tuesday that electric vehicle sales in the U.S. more than doubled compared to the same period last year in the first three months of this year after the launch of its new EV9 large sport utility vehicle.
Tesla pioneered electric cars for the masses, but its lineup is aging. Tesla's only completely new model since 2020 is the Cybertruck, a futuristic pickup truck that went on sale in limited numbers last year. The cheapest version Tesla says it can ship this year will start at about $80,000, limiting its appeal to wealthy early adopters.
Rivian, which owns the R1 pickup truck that competes with the Cybertruck, said its sales, including that truck and two other models, rose 70% in the quarter to 13,600 units.
Tesla is working on an electric car that would cost around $25,000, but the model is not expected to be available in large quantities until 2026. In the meantime, Tesla remains mostly dependent on his Model Y SUV and Model 3 sedan. sale.
The company has repeatedly cut prices, but analysts say the strategy hasn't done enough to stimulate sales and has depressed profits. The company recently slightly increased the prices of some cars in the United States and China. Model Y prices start at nearly $45,000 before federal and state tax breaks, after his $1,000 price increase announced this week.
Gary Black, managing partner at investment firm Future Fund, told Posted.
Tesla CEO Musk has given no clear indication of how the company plans to regain momentum. At the same time, his polarizing rhetoric and support for right-wing conspiracy theories have alienated many of the left-wing customers most likely to buy electric cars.
Last year, Los Angeles resident Rafael Cassens traded in his leased Tesla Model Y for a leased BMW i4 electric car. She was one of the reasons Musk changed jobs, she said.
“Honestly, I don't like him at all as an individual,” said Cousens, who is registered as a Democrat but describes herself as an independent. She also said she received poor service from the company. “The attitude of the company is definitely a reflection of the owners,” Cousens added.
Tesla stock was down about 5% on Tuesday morning.
