Prior to the market opening on April 2, Tesla revealed its production and delivery figures for the first quarter. After the release of the statement, the stock crashed and the day ended with the price closing nearly 5% lower. In the first quarter, Tesla produced over 433,000 vehicles and delivered approximately 387,000 vehicles.
According to the company, the decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.
Nigel Green, CEO, deVere Group says: “Tesla’s recent sales dip, marking its first year-over-year decline since the onset of the pandemic, serves as a microcosm of broader market trends.
The drop in demand signals a cautious consumer sentiment, reflective of lingering concerns about inflation, among other factors, which can be expected to trigger market volatility.
Companies operating in similar sectors, which are based around discretionary spending, including major household names like Apple and Nike, are experiencing similar challenges, with reduced consumer spending impacting their bottom line.”
In the fourth quarter of last year, Tesla produced approximately 495,000 vehicles and delivered over 484,000 vehicles. In 2023, vehicle deliveries grew 38% YoY to 1.81 million while production grew 35% YoY to 1.85 million
Tesla will post its financial results for the first quarter of 2024 after market close on Tuesday, April 23, 2024.