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Tesla’s deliveries fell more than expected in the first three months of this year, marking its worst quarter since 2022, as the electric-vehicle maker faced a consumer backlash in Europe and weak demand in China.
The US group, led by Elon Musk, delivered 336,681 cars in the first quarter, far fewer than the 390,000 forecast by analysts and the 387,000 it delivered in the same period last year.
Tesla’s shares were down almost 5 per cent in pre-market trading.
The figure lagged behind that of China’s BYD, which has regained its crown as the world’s best-selling electric-vehicle maker after this week reporting sales of 416,388 EVs in the same period.
Musk, a key ally of US President Donald Trump, has hurt Tesla’s brand in Europe through his interventions in the region’s politics. Delays to the upgrade of its flagship Model Y car have also dented sales.
The company is banking on a revival in demand after finally launching the redesigned Model Y in China in February and Europe last month.
But the upgrade has not yet lifted sales, with new registrations falling sharply in France, Sweden and other European markets.
Chinese rival BYD has continued to charge ahead with its overseas expansion, armed with advanced technologies and strong hybrid and electric offerings in March.
This is a developing story
In the latest news from the electric vehicle industry, Tesla has reported a significant drop in deliveries for the first quarter of this year. The company, led by Elon Musk, delivered 336,681 cars, falling short of analysts’ expectations and last year’s numbers. This decline has been attributed to consumer backlash in Europe and weak demand in China.
On the other hand, Chinese electric vehicle maker BYD has surpassed Tesla as the world’s best-selling electric vehicle maker, with sales of 416,388 EVs in the same period. This success can be attributed to BYD’s strong hybrid and electric offerings, as well as its overseas expansion efforts.
Elon Musk’s involvement in European politics has also negatively impacted Tesla’s brand in the region. Additionally, delays in upgrading the Model Y car have affected sales. Despite launching the redesigned Model Y in China and Europe, Tesla has yet to see a significant increase in demand.
As the electric vehicle market continues to evolve, it will be interesting to see how Tesla responds to these challenges and whether they can regain their position as a leading player in the industry. Stay tuned for more updates on this developing story.
