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Tesla delivered fewer cars to customers in the first three months of 2024 than Wall Street expected, and Tesla’s sales fell year-over-year for the first time in nearly four years, the company said Tuesday.
According to UBS, sales in the first quarter were about 386,800 units, compared to an estimated 477,000 units. This was a decrease of 20.1% compared to the last quarter of 2023 and 8.4% compared to the same period last year. This is also the first time since 2020 that quarterly vehicle deliveries have decreased compared to the previous year.
EV sales are struggling across the industry, and Elon Musk’s automaker is no exception to the economic fallout. Tesla has slashed the prices of its cars over the past year in pursuit of sales, squeezing profits.
“Tesla has announced price hikes in the US and China starting in April, but we view this as an attempt to boost sales in March rather than a sign of solid demand,” Deutsche Bank analysts said in a statement on the delivery track record. Customers were alerted prior to the announcement. .
Tesla’s future profit growth will depend heavily on unreleased new cars at a much lower price point and sustained sales of the Cybertruck.
Tesla is also gradually increasing pressure on its employees to push its fully self-driving software onto customers when they take delivery of their cars. The $12,000 (or $199 per month) add-on is a significant revenue driver.
Musk has previously emphasized the importance of Tesla’s self-driving plans. During an earnings call last year, Musk said the technology would theoretically allow Tesla to sell cars at no profit.
“We’re the only ones making cars that technically can be sold for zero profit right now, and that in the future can actually generate huge economic benefits through self-driving,” Musk said. Said “I don’t know how many people will understand the depth of what I just said, but it’s very important.”
That is as long as Tesla can escape the increased attention from safety regulators that forced a major recall in March 2023.