Tesla Sales Drop , More Than Expected.
The automaker has posted its first yearly drop in sales since the onset of the pandemic, CNN reports.
.
The company reportedly built 433,000 units but only delivered 387,000.
That's significantly less than the 484,507 vehicles it delivered in the last three months of 2023.
Tesla shares fell 5% on April 1.
.
Tesla partially attributed the sales drop to increased production of the updated Model 3 at its factory in Fremont.
The company also cited factory shutdowns caused by ships being diverted from the Red Sea because of attacks by Iran-backed Houthi militants, CNN reports.
The company also cited factory shutdowns caused by ships being diverted from the Red Sea because of attacks by Iran-backed Houthi militants, CNN reports.
Additionally, its factory in Germany shut down for a week because of an arson attack.
.
Increased competition from brands such as China's BYD have also impacted sales, CNN reports.
.
Increased competition from brands such as China's BYD have also impacted sales, CNN reports.
.
Wedbush Securities analyst Dan Ives referred to Tesla demand in China as "very soft coming out of the gates for 2024.".
While we were anticipating a bad first quarter, this was an unmitigated disaster that is hard to explain away, Wedbush Securities analyst Dan Ives, via note to clients.
We view this as a seminal moment in the Tesla story for Musk to either turn this around and reverse the black eye first quarter performance.
, Wedbush Securities analyst Dan Ives, via note to clients.
Otherwise, some darker days could clearly be ahead that could disrupt the long-term Tesla narrative, Wedbush Securities analyst Dan Ives, via note to clients
