Abstract: Tesla delivered a total of 336,700 vehicles in the first quarter, far below analysts' forecast of 390,000 and also lower than 387,000 in the same period last year.

[Written by Zhou Shengming from Observer Network, Edited by Gao Xin] According to a report on April 3 by Financial Times, Tesla's car sales dropped significantly in the first three months this year, marking its worst quarterly performance since 2022. Tesla faced backlash from consumers in Europe and fierce competition in China, even performing poorly in its home market.

Tesla delivered a total of 336,700 vehicles in the first quarter, far below analysts' forecast of 390,000 and also lower than 387,000 in the same period last year.

Financial Times analysis showed that Tesla's sales lagged behind BYD. It is reported that BYD's sales during the same period reached 416,400, reclaiming the title of global electric vehicle sales champion.

RBC Capital Markets analyst Tom Narayan said that he originally expected consumers to rush to buy electric vehicles before Trump's auto tariff policy came into effect. For example, General Motors' sales in the U.S. increased by 17% in the first quarter.

However, Tesla's sales in March did not receive a boost, and its sales in the U.S. for the first quarter are expected to decline by 11% year-over-year.

Wedbush analyst Dan Ives said, "We won't delude ourselves about these data... All indicators are terrible. This quarter is an example of how Musk has damaged Tesla. The more political actions he takes regarding DOGE, the greater damage it does to the brand, which is beyond doubt."

It is reported that Musk's alliance with Trump and the controversial layoffs at the Department of Government Efficiency (DOGE) have sparked strong resistance in the U.S. Some Tesla dealerships were surrounded by protesters, and some vehicles were damaged. Additionally, Musk's support for right-wing political issues in Europe has harmed the Tesla brand.

It was reported that on Wednesday, during early trading on the U.S. stock market, Tesla's shares fell by 6.3% at one point. However, after Politico reported that Musk would soon leave his position at the Department of Government Efficiency (DOGE), Tesla's shares rebounded by over 5%.

Musk's neglect of Tesla management has drawn criticism from investors and analysts. Currently, Musk is focusing more energy on political activities. This week, he appeared in Wisconsin to try to influence the outcome of the state's supreme court election, claiming that the election "could determine the fate of Western civilization." The candidate he supported eventually lost the election.

Tesla's stock price surged after Trump's election, reaching a peak of $1.5 trillion in December 2022, but has since fallen by more than 40%.

The persistent weakness of the stock has prompted Musk to hold an employee meeting two weeks ago in Texas, where he personally urged Tesla employees to hold their shares, stating that the company's plans for autonomous driving would improve the outlook.

Analysts said, "Musk needs to stop this political storm and balance his roles as Tesla CEO and DOGE head. Tesla's future was originally bright, but now the company is in a full-blown crisis, largely self-inflicted."

Tesla is currently urgently seeking measures to boost sales.

It is reported that the refreshed Model Y was launched in the Chinese market in February and in the European market in March.

In a statement, Tesla said that the replacement of the Model Y production line caused the company to lose several weeks of capacity in the quarter. "The ramp-up progress of the new Model Y production is proceeding smoothly," the statement read.

However, Financial Times noted that the launch of the refreshed Model Y has yet to drive sales. Tesla's new vehicle registrations in France, Sweden, and other European markets dropped significantly in March.

In the first two months of this year, Tesla's market share in China's pure electric vehicle market was 7%, down from 12% in the same period last year.

"Tesla models are aging, forming a stark contrast with BYD's continuous improvements in hybrid and electric technology. BYD is actively expanding overseas markets. Meanwhile, Tesla is also facing increasingly fierce competition from traditional automakers like BMW and Volkswagen," Financial Times stated.

In addition, Tesla is plagued by quality issues. Last month, Tesla recalled nearly all Cybertrucks sold in the U.S. due to the possibility of exterior trim pieces detaching while driving.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7489013869835387444/

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