Tesla Q1 Deliveries Hit 358,023 Vehicles, Marking First Year-Over-Year Growth in Three Years
Tesla shares tumbled Thursday after the electric vehicle maker reported first-quarter deliveries that fell sharply short of Wall Street expectations, reigniting concerns about its competitive position in the global EV market. The company delivered 358,023 vehicles worldwide between January and March, a 6% increase from the same period last year but a staggering 15% decline from the 423,000 vehicles delivered in Q1 2023, highlighting a significant contraction in its market momentum. This delivery figure missed analyst estimates of approximately 381,000 by about 6%, triggering an immediate 3% drop in Tesla's stock price in early trading as investors grappled with the widening gap between Tesla and Chinese rival BYD, which surpassed it as the world's top EV seller last year.
Budget models fail to boost sales
Tesla isn’t alone in struggling to sell electric vehicles. The whole industry is hitting a wall, especially in the United States.
Big automakers have backed away from their electric vehicle plans. Some have canceled them outright. Newcomers are having trouble too. Rivian reported Thursday morning that it shipped just over 10,000 vehicles in the first quarter. That’s basically the same number it reports every quarter.
Rivian does have a new model coming, the cheaper R2 SUV. The company is counting on it being a huge hit right away. But the cheapest version won’t arrive until late 2027.
Last October, Tesla rolled out cheaper versions of the Model Y and Model 3. Base prices: $39,990 and $36,990. The company spent over a year talking about making more affordable cars before these finally showed up.
They haven’t made much difference. This weak first quarter means Tesla could see sales decline for three straight years. Profits are falling too. This is the same company that once told investors it would grow sales 50% every year.
The Cybertruck flopped. Tesla only moved 16,130 units in its “other models” category during the quarter. That includes the Cybertruck, plus the Model S and Model X. The metal-covered truck was supposed to be huge. It wasn’t.
CEO Elon Musk scrapped plans for a $25,000 car and bet everything on the CyberCab instead—a self-driving taxi. So now Tesla doesn’t have a new affordable vehicle to offer.
Musk keeps pushing investors to forget about car sales. He wants them focused on a future with self-driving robotaxis and humanoid robots in factories and homes.
Maybe that’s why Tesla’s stock price stays expensive. It trades at 181 times what analysts expect the company to earn, compared to 22 times for the broader market.
Tesla is also on Iran’s target list
Tesla plans to start mass-producing its Optimus robot this summer. Musk says he’ll build 1 million by 2027. He’s also mentioned orbital data centers.
Nobody knows if people will actually buy humanoid robots in those numbers. The tech isn’t proven yet.
Moreover, there’s a geopolitical problem as well. Iran’s Islamic Revolutionary Guard Corps put out a warning on Wednesday. Eighteen American tech companies, Tesla included, could become targets because of U.S. and Israeli strikes on Iran. The message told workers at Middle East facilities to clear out by 8 p.m. Tehran time.
Earlier this month, Iranian forces already attacked Amazon Web Services facilities in the region. That knocked out digital services across the United Arab Emirates.
Tesla reports full quarterly earnings on April 22. Analysts expect net income of around 25 cents per share on $23 billion in revenue.
If you want a calmer entry point into DeFi crypto without the usual hype, start with this free video.
