Tesla’s sales fell nearly 9% in the first quarter of 2024 as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to draw more buyers. The company delivered 386,810 vehicles from January through March, almost 9% below the 423,000 it sold in the same quarter of last year.
The company attributed the decline in part to the introduction of an updated version of the Model 3 sedan at its Fremont, California, factory, plant shutdowns due to shipping diversions in the Red Sea, and an arson attack that knocked out power to its German factory.
In its letter to investors in January, Tesla predicted “notably lower” sales growth this year. The letter stated that Tesla is between two big growth waves, one from the global expansion of the Model 3 and Y, and a second coming from the Model 2, a new smaller, and less expensive vehicle.
Last year, Tesla dramatically lowered U.S. prices by up to $20,000 for some models. In March, it temporarily knocked $1,000 off the Model Y, its top-selling vehicle. The reductions cut into the company’s profit margins, which spooked investors.
Shares of Tesla tumbled 5.5% in Tuesday morning trading to $165.60, continuing an extended decline. Investors have shaved about 34% off the value of the company so far this year, dumping shares after growing leery of the tremendous growth story that Tesla has been telling.
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