Tesla posts worst quarterly sales in years 

The company delivered 358,023 vehicles worldwide in the first quarter falling short of analysts expectations. File picture

Electric car manufacturer Tesla posted one of its worst sales quarters in years as the company struggles to turn around its core business and navigate an increasingly challenged electric-vehicle market.

The company delivered 358,023 vehicles worldwide in the first quarter, however, analysts anticipated 372,160 on average among estimates compiled by Bloomberg. It is the second consecutive quarter that Tesla has fallen short of projections.

Deliveries still managed to rise 6.3% from a year earlier, when the carmaker paused Model Y production at plants around the globe and dealt with a consumer backlash against chief executive Elon Musk. Aside from that period, the latest quarter’s results were the lowest since mid-2022.

Tesla shares fell as much as 4.6% after the markets opened in New York, the biggest intraday drop in almost two months. 

The stock declined 15% this year through Wednesday’s close and has fallen 22% from a record high in December.

The US — Tesla’s largest market — is entering a new era for electric car demand following the loss of federal incentives that had been subsidizing purchases. The phase-out of those incentives at the end of September heavily skewed sales in the second half of last year.

Aside from the US market headwinds, Tesla is also grappling with rising competition from Chinese electronic car makers around the world and an aging vehicle lineup.

Tesla delivered a total of 341,893 Model Y SUVs and Model 3 sedans in the first quarter, with the two popular vehicles accounting for the bulk of the company’s sales and production. Deliveries of other electric cars — the Model S, Model X and Cybertruck — rose to 16,130.

The deliveries were well short of Tesla’s overall production during the quarter, which came to 408,386.

• Bloomberg