On Tuesday, Tesla stock experienced a slide as quarterly deliveries decreased for the first time in nearly four years amid the firm’s price deductions to agitate in an overly fierce market.
The Texas-based company’s stock closed the session plummeting by 4.90% to $166.63 apiece. In the after-hours trading, the electric vehicle (EV) giant continued to fall by 0.86% to $165.20 per stock.
Moreover, Tesla’s stock plunge has caused its market cap to lose over $30.00 billion. The shares have been shamed about 33.00% so far this year. The EV maker has seen booming sales, but the firm is supporting a slowdown in 2024.
Furthermore, the firm’s deliveries slid by 8.50% to 386,810 cars in the first quarter, compared to last year’s 433,371 vehicles produced. According to reports, analysts anticipated the company to deliver 452,200 autos.
Tesla previously reported a sales decline in the second quarter of 2022, when the pandemic forced it to cease its production.
Meanwhile, the company has been slow to regain its waning models, as high interest rates have lessened customers’ appetite for costly items and China has revealed cheaper versions.
Moreover, Tesla signaled the slide in volumes partly to attempt to prepare its Fremont, California, plant to operate surged output of the upgraded Model 3 and to halt at its Berlin factory due to the hit of the Red Sea dispute and arson attack.
Xiaomi SU7 Debut to Rival Tesla Model 3
On Tuesday, Xiaomi’s market cap surged over $4 billion as the smartphone maker unveiled its sports Speed Ultra 7 Sedan (SU7), which is much cheaper than Tesla’s Model 3.
Meanwhile, the Texas-based firm has outpaced BYD in the quarter, which sold over 300,000 battery electric vehicles (BEV). However, the Shenzhen-based automaker has posted a 13.00% rise in BEV global purchases, which is better than last year’s sales.
According to reports, Tesla faces separate image problems, such as lawsuits and probes on its Auto-pilot diver assistance system and accusations.
However, the EV giant has claimed the reports as deceitful and has held drivers liable for not looking at the road when their car crashes on its autopilot feature.
