Tesla's quarterly car deliveries drop, sparking concerns over global market share amidst heightened international competition. (Getty Images)
Tesla experienced a decline in its quarterly car deliveries for the first time since 2020, raising concerns about its global market position amidst heightened competition internationally.
The electric vehicle manufacturer, led by Elon Musk, announced on Tuesday that it had delivered 386,810 vehicles worldwide during the first three months of 2024. This figure reflects a decrease of over 9% compared to the 422,875 vehicle deliveries in the same period last year, falling short of Wall Street's anticipated 457,000 deliveries.
Tesla, headquartered in Austin, Texas, had produced over 433,000 vehicles slated for delivery in the first quarter, leaving approximately 12% of its inventory unsold. The company attributed this shortfall to shipping disruptions in the Red Sea, as vessels opted for longer and costlier routes to avoid attacks by Houthi rebels. Additionally, setbacks such as an arson incident at Gigafactory Berlin and construction delays at its Fremont, Calif., facility contributed to the decline.
Analysts, including Emmanuel Rosner from Deutsche Bank, noted that the gap between production and deliveries may indicate underlying demand issues, beyond the known production bottlenecks.
The majority of Tesla's sales comprised 369,783 Model 3s and Model Ys, according to the company.
Despite falling short of expectations, Tesla managed to reclaim its position as the world's leading electric vehicle seller from BYD. The Chinese automaker had overtaken Tesla late last year, offering lower-priced models in high volumes, though its vehicles are not available in the US.
BYD reported selling 300,114 all-electric vehicles globally in the first quarter of 2024, a 13% increase from the previous year, indicating China's growing influence in the global auto industry.
Meanwhile, Nissan announced plans for 30 new vehicles, with a significant portion set to be all-electric. The company revealed that seven of these models would be exclusively reserved for the US and Canada markets, though the exact number of fully electric vehicles was not specified. Additionally, Nissan hinted at the introduction of "e-POWER and plug-in hybrid models" for the Americas.
Tesla is scheduled to release its full financial report for the first quarter of 2024 on April 23.
