Yesterday, Tesla reported its first year-over-year sales decline since 2020, signaling more concern for an EV industry that’s already struggling to find its footing.
The company reported it built 433,000 vehicles but delivered only 386,810 cars in Q1 of 2024, down 8.5% from a year earlier.
Shares of Tesla fell 5% on Monday, and have lost more than a third of their value this year.
Wall Street analysts predicted that deliveries would be down, since the company warned of “notably lower” growth in January due to the process of building out a new model and high interest rates making it harder for people to buy new cars. But Tesla performed even worse than expectations, falling short by ~70,000 vehicles, according to some forecasts.
The automaker cited production setbacks as part of the reason for the letdown. Those included an alleged arson attack on an assembly line in Germany, a parts shortage due to attacks on ships in the Red Sea, and the company’s transition over to a new Model 3 sedan.
But, it’s not just a supply issue… Consumers aren’t as eager to drive electric vehicles these days, and there is increased competition in the EV space.
Tesla isn’t the only carmaker feeling the sting. EV competitor Rivian also missed production estimates in Q1, while Ford and General Motors are reworking their EV plans amid weaker-than-expected demand.
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