After months of achieving targets, Elon Musk’s Tesla missed the mark in Q1 2024.
The company surpassed analyst estimates in Q4 2023 by producing approximately 495,000 vehicles and delivering over 484,000. In Q1 2024, however, the EV company delivered just 386,810 vehicles, falling short by roughly 100,000 deliveries, according to Bloomberg‘s estimates.
According to the company, it warned that its rate of growth would be muted in 2024, quoting the interest rate hikes squeezing the spending power of potential customers. Additionally, the company faced production disruptions at its Berlin factory, paired with intensifying competition in China’s EV market.
Further, Tesla also attributed the decline to a Model 3 upgrade, alongside the Red Sea-related shipping delays.
Despite the challenges, Tesla reclaimed its spot as the world’s top seller of electric cars. For reference, Tesla lost the spot to China’s BYD in Q4 2023. This might indicate a market-wide slowdown in EV sales.
Tesla’s stock fell 4.9 percent on Tuesday, March 2nd, in response to the poor delivery metrics.
Read the complete Bloomberg report here.
Header image credit: Shutterstock
Source: Bloomberg
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