Tesla Deliveries Experience First Quarterly Decline In Nearly Four Years

Tesla reported a decline in quarterly deliveries for the first time in nearly four years, missing Wall Street estimates, a development described by some as "ugly" as price reductions failed to stimulate demand in a highly competitive market, according to Akash Sriram and Hyunjoo Jin's report for Reuters.

The decline in deliveries was attributed to slow model refreshes amid high interest rates dampening consumer interest in major purchases, alongside competition in China's auto market. I Photo: Steve Jurvetson, Flickr

Shares of the Elon Musk-led company dropped by 5.2% to $166.08 on Tuesday afternoon, resulting in a loss of about $30 billion in market value. Year-to-date, the shares have fallen approximately 33%.

Following years of rapid sales growth that propelled Tesla to become the world's most valuable automaker, the company anticipates a slowdown in 2024.

Tesla's deliveries decreased by 8.5% in the first quarter to 386,810 vehicles compared to the previous year, while the company produced 433,371 vehicles during the same period.

Wall Street analysts, polled by Visible Alpha, had expected Tesla to deliver 454,200 vehicles on average.

The decline in deliveries was attributed to slow model refreshes amid high interest rates dampening consumer interest in major purchases, alongside competition in China's auto market, where rivals are introducing more affordable models.

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