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NEW YORK (AP) — Sales of Tesla decreased in the first three months of the year, another sign that Elon Musk’s electric car company, which was once booming, is struggling to attract buyers.The 13% drop is likely due to a combination of factors, including its aging product line, competition from rivals, and a negative reaction to Musk’s involvement in promoting far-right policies. It also serves as a warning that the company’s first-quarter earnings report, which will be released later this month, could disappoint investors.
How much are Tesla’s losses?Tesla reported deliveries of 336,681 units worldwide in the quarter from January to March. The figure was lower than the sales of 387,000 in the same period last year. The decrease occurred despite the large discounts, zero financing, and other incentives.
The analysts surveyed by FactSet were expecting much higher deliveries of 408,000. View this post on Instagram A post shared by Metro World News (@metroworldnews)Tesla’s shares have fallen by about half since they reached a record in mid-December, as expectations of looser regulation and big gains with Donald Trump as president were replaced by fears that Musk’s cars boycott and other issues could severely impact the company.Analysts are still not sure how much of the drop in sales is due to protests or other factors.
Electric car sales have been slow overall, and Tesla in particular is suffering as car buyers postpone the purchase of its best-selling model, the Model Y, due to plans for an updated version later this year.The electric vehicle manufacturer from Austin, Texas, has also lost market share to its rivals in recent months as their offerings improve, including those from BYD. The Chinese electric vehicle giant introduced in March a technology that allows their cars to be charged in just a few minutes.
Tesla’s shares fell more than 4% before the market opened on Wednesday..
