The sales decline came despite Tesla lowering prices. Analysts on Wall Street expected 457,000 cars to be sold in the first quarter and were surprised by the sales failure.
– A dark day in Tesla’s history with these disastrous figures from the first quarter. Elon Musk needs to turn this around, writes Wedbush analyst Dan Ives.
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– Foreshadows gloomy times for Tesla
Ives describes the figures as a complete “trainwreck” for Tesla and says that if you look up the term in a dictionary, Tesla’s quarterly figures for the first quarter of 2024 will come up as a description.
– I think this could be a fateful moment for Tesla and portends what could be some bleak times if Tesla is unable to turn this around, he says in an interview with CNBC.
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Blame the Houthi militia and big fire
Tesla believes the decline can partly be explained by the fact that they are now in the process of producing an updated version of their Model 3 at the Fremont factory in California.
The Houthi militia’s attack on ships in the Red Sea, which has forced many ships to sail a large detour around the southern tip of Africa, may also be part of the explanation, Tesla believes.
An arson that led to a power outage at the factory in Germany may also have affected sales, the company believes.
In a letter to shareholders in January, Tesla warned against “significantly lower sales growth” this year.
(© NTB)
