Tesla shares fall after major delivery miss in Q1

Tesla stock (TSLA) tumbles after the EV maker reported significant delivery miss for the first quarter. The first-quarter delivery report comes after Tesla warned in January that car volume growth would be “significantly lower” than in 2023.

For the first quarter, Tesla reported 386,810 global deliveries, well below estimates of 449,080 compiled by Bloomberg. Tesla produced 433,371 vehicles, which was also below estimates of 452,976.

Tesla’s first-quarter delivery total is a significant decline from the fourth quarter, in which it delivered 484,000 vehicles. But more worrying for investors is that the first quarter figure represents a year-over-year decline compared to the first quarter of last year, when Tesla delivered 423,000 vehicles. Tesla’s first-quarter figure marks the first annual decline in first-quarter deliveries since 2020.

Tesla shares fell 6% in early trading after the report was released.

“While we expected a poor first quarter, this was an unmitigated first quarter disaster that is difficult to explain away,” Wedbush analyst Dan Ives said in a note shortly after the report’s release. “We view this as a seminal moment in the Tesla story for Musk to turn this around and reverse the black eyes in the first quarter. Otherwise, there could clearly be dark days ahead that could disrupt the Tesla story in the long term.”

Looking at the model lines, Tesla said it produced 412,376 units Model 3 And Model Y vehicles and delivered 369,783. Tesla reported production of its “other models,” which now includes both the Cybertruck and the more expensive one Model S And Model X vehicles, totaled 20,995, with deliveries at 17,027.

“The discrepancy between deliveries and production implies ~46,000 of incremental inventory, confirming that in addition to the known production bottleneck (in Fremont and Berlin) there may also be a serious demand problem,” Deutsche Bank’s Emmanuel Rosner wrote in a note after the release. .

Tuesday’s delivery report comes after Tesla raised prices on its popular Model Y SUV on Monday for all three trim levels by $1,000. Tesla did the same in Chinawith the Model Y Long Range version increasing by 5,000 yuan ($675) for a total of 304,900 yuan and the Performance version increasing by 5,000 yuan to 368,900 yuan.

“Although the company has recently increased prices in the US China As previously forecast, we think this may have to reverse, creating further downside risks for ASP for the rest of the year,” said Deutsche Bank’s Rosner.

Tesla also announced that it will report first-quarter results after the bell on Tuesday, April 23.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him Tweet and further Instagram.

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