One of the world’s leading electric vehicle manufacturers, Tesla, has faced a significant setback as it grapples with a decline in sales. Despite expecting a decrease in annual sales for the first time since the pandemic, the magnitude of the drop caught the company off guard, leading to repercussions on Wall Street.
Although Tesla claimed to have produced a staggering 433,000 electric vehicles, it only managed to deliver 387,000 units, resulting in 46,000 cars remaining unsold.
The company’s stock performance mirrored the turmoil in its financials. On April 2nd, Tesla shares plummeted by 4.90% in a single day, closing at USD 166.63, marking a loss of 8.59 points from the previous day’s value of USD 173.54.
Zooming out to examine the company’s performance over the past four months reveals a downward trend since December 27th when shares traded at a healthier USD 261.44.
The stock market woes reflect Tesla’s struggles in the real market, particularly evident in the shortfall of 97,507 cars sold compared to the previous quarter.
Various factors contribute to this narrative, including intense competition in a market once dominated by Tesla itself. Besides BYD, other players, including American automakers like Ford and GM, have entered the EV arena, albeit with challenges and resource depletion.
Furthermore, Tesla’s controversies, ranging from Elon Musk’s unpredictable online behavior to numerous reports of technical glitches leading to mass recalls, have likely exacerbated the company’s recent downturn.
Looking ahead, events such as the US elections and potential interest rate adjustments could further impact Tesla’s fortunes in the near future, according to Free Press Journal.
(Finance World and The Free Press Journal have published the article under a mutual content partnership arrangement.)