Tesla's Global Deliveries Plummet Amid Model Transition and Controversy
Company reports a 13% decline in vehicle deliveries, falling short of analyst expectations as stock prices drop significantly.
Tesla's global vehicle deliveries fell by approximately 13% in the last quarter, following a model change and controversies surrounding CEO Elon Musk.
The company delivered 336,681 vehicles, a stark contrast to analyst expectations of a 3.5% decline.
The results indicate a significant drop in sales, particularly in the European market, which had already hinted at weaker performance.
This quarter represents Tesla's worst performance since 2022, according to industry reports.
Prior to the regular trading session in New York, the company's stock saw a decline of up to 5.8%.
Since a record high following the 2020 U.S. elections, Tesla's shares have decreased by 44% as of the previous trading day's close.
Multiple factors have contributed to the reduced sales figures.
Tesla undertook significant factory adjustments worldwide to produce the redesigned Model Y, leading to common production disruptions experienced by automotive manufacturers during vehicle model transitions.
Further complicating matters, Musk’s public involvement in U.S. politics, including his advisory role to former President Donald Trump and support for far-right parties in Europe, has been cited by analysts as a potential strain on the company’s image.
Competitors, notably in China, pose increased pressure on Tesla, which has previously held a leading position in the electric vehicle market.
Historically, Musk has been seen as the driving force behind Tesla’s success.
However, his political activities are now perceived as detrimental to the company.
Demonstrations have targeted Tesla vehicles, with some being labeled as “Nazi cars,” and reports indicate instances of vandalism at delivery centers.
In response, the U.S. government has publicly supported Musk, with the attorney general threatening to classify vandalism against Tesla as domestic terrorism.
Additionally, the Secretary of Commerce encouraged the purchase of Tesla stock, while Trump himself participated in a promotional event featuring Tesla vehicles.
Amid these challenges, Musk continues to envision significant advancements for Tesla, including autonomous driving and humanoid robots, which he argues could solidify the company as the most valuable in the world.
However, Tesla has yet to provide consistent evidence of reliably autonomous vehicles operating without human intervention.
The company delivered 336,681 vehicles, a stark contrast to analyst expectations of a 3.5% decline.
The results indicate a significant drop in sales, particularly in the European market, which had already hinted at weaker performance.
This quarter represents Tesla's worst performance since 2022, according to industry reports.
Prior to the regular trading session in New York, the company's stock saw a decline of up to 5.8%.
Since a record high following the 2020 U.S. elections, Tesla's shares have decreased by 44% as of the previous trading day's close.
Multiple factors have contributed to the reduced sales figures.
Tesla undertook significant factory adjustments worldwide to produce the redesigned Model Y, leading to common production disruptions experienced by automotive manufacturers during vehicle model transitions.
Further complicating matters, Musk’s public involvement in U.S. politics, including his advisory role to former President Donald Trump and support for far-right parties in Europe, has been cited by analysts as a potential strain on the company’s image.
Competitors, notably in China, pose increased pressure on Tesla, which has previously held a leading position in the electric vehicle market.
Historically, Musk has been seen as the driving force behind Tesla’s success.
However, his political activities are now perceived as detrimental to the company.
Demonstrations have targeted Tesla vehicles, with some being labeled as “Nazi cars,” and reports indicate instances of vandalism at delivery centers.
In response, the U.S. government has publicly supported Musk, with the attorney general threatening to classify vandalism against Tesla as domestic terrorism.
Additionally, the Secretary of Commerce encouraged the purchase of Tesla stock, while Trump himself participated in a promotional event featuring Tesla vehicles.
Amid these challenges, Musk continues to envision significant advancements for Tesla, including autonomous driving and humanoid robots, which he argues could solidify the company as the most valuable in the world.
However, Tesla has yet to provide consistent evidence of reliably autonomous vehicles operating without human intervention.
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