Tesla's quarter one sales fall nearly 9% as competition heats up and demand for electric vehicles slows

Tesla Sales Drop , More Than Expected. The automaker has posted its first yearly drop in sales since the onset of the pandemic, CNN reports. . The company reportedly built 433,000 units but only delivered 387,000. That's significantly less than the 484,507 vehicles it delivered in the last three months of 2023. Tesla shares fell 5% on April 1. . Tesla partially attributed the sales drop to increased production of the updated Model 3 at its factory in Fremont. The company also cited factory shutdowns caused by ships being diverted from the Red Sea because of attacks by Iran-backed Houthi militants, CNN reports. The company also cited factory shutdowns caused by ships being diverted from the Red Sea because of attacks by Iran-backed Houthi militants, CNN reports. Additionally, its factory in Germany shut down for a week because of an arson attack. . Increased competition from brands such as China's BYD have also impacted sales, CNN reports. . Increased competition from brands such as China's BYD have also impacted sales, CNN reports. . Wedbush Securities analyst Dan Ives referred to Tesla demand in China as "very soft coming out of the gates for 2024.". While we were anticipating a bad first quarter, this was an unmitigated disaster that is hard to explain away, Wedbush Securities analyst Dan Ives, via note to clients. We view this as a seminal moment in the Tesla story for Musk to either turn this around and reverse the black eye first quarter performance. , Wedbush Securities analyst Dan Ives, via note to clients. Otherwise, some darker days could clearly be ahead that could disrupt the long-term Tesla narrative, Wedbush Securities analyst Dan Ives, via note to clients

Tesla's recent market downturn is largely attributed to concerns over diminishing demand for electric vehicles (EVs). The company reported disappointing delivery...