Key Takeaways
- Tesla shares tumbled in early trading Tuesday as the EV maker reported 386,810 deliveries for the first quarter of 2024, an 8.5% decline from deliveries in the same period a year earlier.
- The company blamed the decline in volumes in part on factory shutdowns as a result of the Red Sea conflict and an arson attack at Tesla’s Berlin Gigafactory.
- The electric vehicle maker will report its full quarterly earnings later this month as it tries to reverse the slide its stock has had so far this year.
- Tesla was the worst-performing stock in the S&P 500 in the first quarter, with shares down 33% year to date.
Tesla (TSLA) shares tumbled over 5% in early trading Tuesday as the electric vehicle (EV) maker reported it delivered 386,810 vehicles in the first quarter of 2024, about 8.5% below deliveries in the same period a year earlier.
Tuesday’s figures are well below the 422,875 vehicles Tesla delivered in the first quarter of 2023 and the 484,507 deliveries in the final quarter of 2024.
“Decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin,” the company said.
Last month, reports also emerged that Tesla had decreased production at its factory in Shanghai, China, shifting to a five-day schedule from six and a half days previously.
Wall Street received an early indication of the direction Tuesday’s production and deliveries figures could go, as data from the China Passenger Car Association reportedly showed Tesla’s China-made vehicle sales to be flat year-over-year, despite sales across the industry rising 33% in China in March.
A number of Tesla’s Chinese EV rivals reported monthly and quarterly results Monday, largely posting year-over-year increases in sales as a price war tightened competition there, and as some Chinese EV brands like BYD (BYDDY) and Nio (NIO) have tried to expand in other markets like Europe.
Tesla is set to report its full quarterly earnings later this month, after the bell on April 23 as it tries to reverse the slide its stock has had so far this year.
Tesla was the worst-performing stock in the S&P 500 in the first three months of the year, having lost over 33% of its value year to date. Analyst opinions on Tesla have been divided, with some like those at Wells Fargo calling Tesla “a growth company with no growth,” while others have suggested the selloff of Tesla stock that took place in the first quarter was overdone.
The EV maker’s stock price was down about 5.3% to $165.95 as of 10 a.m. ET Tuesday.