Tesla stock prices tumble as Elon Musk’s EV firm sees worst sales since 2022
Tesla has reported its first year-on-year drop in sales since 2020, with stock prices dropping as much as 5% as a result
Elon Musk might well have his head in his hands this morning as Tesla has just released its quarterly sales figures for the first part of 2024, reporting the lowest number of sales for Tesla in well over a year.
In its trimestral sales report, the American EV firm confirmed that it delivered just shy of 387,000 units worldwide across its entire line-up during the first few months of 2024 – a decrease of over 8% compared to this time last year, and the first annual drop in sales since 2020. This comes in stark contrast to a successful final quarter of 2023, in which Tesla delivered roughly 485,000 cars.
In a press release, Tesla attributed the slump in sales to the arrival and production of the new facelifted Tesla Model 3, Houthi attacks on container ships in the Red Sea, and also the huge fire at its ‘Gigafactory’ in Berlin, which has since been recognised as an arson attack by an extremist political group.
The company has also faced a lot of controversy in recent months, including a recall on its ‘Autopilot’ driver assistance software that affects over two million cars. The U.S’ National Highway Traffic Safety Administration (NHTSA) says that the system is open to misuse given that it currently doesn’t do enough to ensure the driver keeps their hands on the wheel and their eyes on the road at all times.
So what does this mean for Tesla? Well, investors will be squirming in their seats on reading that, since Tesla issued its report last night, the company’s share prices have dropped by as much as 5%. Consequently, as much as $34 billion has been wiped off the value of Tesla as a company.
To combat slowing output, Elon Musk’s EV firm has, in recent months, cut the prices of its Tesla Model 3 saloon and Tesla Model Y SUV, the latter of which, despite the sales slump, currently remains the UK’s best-selling EV.
It’s possible that sales could soon pick up once again, though, as rumours are circulating of a facelifted Model Y featuring many of the same upgrades as the new Model 3 – a longer range, a sleeker design and more tech – that’s set to arrive in the coming months. Tesla is also reportedly working on an entry-level model, suspected to be called the Model 2, that will arrive next year and could cost from as little as £25,000.
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