April 15, 2024

Tesla on Tuesday said it delivered 386,810 electric vehicles over the first three months of 2024, falling wildly short of Wall Street’s expectations.

Last week, after a first quarter that one analyst called a “nightmare,” many analysts lowered their estimates. But the sales figures Tesla reported Tuesday fell far below even the revised estimates.

Tesla stock dropped almost 6% in Tuesday morning trading after the company announced its poor first-quarter deliveries. Shares have fallen more than 33% so far this year, making Tesla the worst performer in the S&P 500. The company is also no longer one of the top 10 U.S. companies by market capitalization, trailing behind Visa, JPMorgan Chase, and weight-loss drug maker Novo Nordisk.

Austin, Texas-based Tesla said it sold 369,784 Model 3 compact cars and Model Y SUVs between January and March, and 17,027 other EVs. Although the automaker does not provide a breakout for those deliveries, they include the Model X crossover SUV, Model S sedan, and the Cybertruck, an electric pickup released by Tesla last November.

Tesla’s sales for the quarter fell more than 8% compared to a year earlier.

The electric vehicle maker produced fewer vehicles in the quarter than it did during the first three months of 2023, largely due to factory revamps and disruptions abroad. Tesla assembled 433,371 EVs last quarter, down from 440,808 in 2023.

Wall Street had estimated deliveries of 457,000 EVs for the first quarter, according to a consensus tracked by FactSet. Deutsche Bank’s Emmanuel Rosner — who rates Tesla stock as a “buy” — trimmed his delivery forecast last week from 427,000 units to 414,000 units and cut full-year expectations from 2.06 million units to 1.9 million units. Morgan Stanley’s Adam Jonas on Wednesday lowered his delivery estimate from 469,000 units to 425,000 units. Jonas last month raised the possibility that Tesla could lose money this year.

In China, where Tesla is facing off against strong local rivals like BYD and newcomers like Xiaomi, Tesla has started telling workers to lower Model Y and Model 3 production. Production has also been slowed because of an update to the Model 3 production line at Tesla’s flagship factory in Fremont, California. And an arson attack near Tesla’s Giga Berlin-Brandenburg in Germany shut down the facility for almost a week, costing the company about $1 billion. That shutdown came just weeks after the German facility reopened after a brief closure due to ongoing Houthi militia attacks on suppliers using the Red Sea to transport goods.

This is a developing story and will be updated.

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