Tesla Shares Tumble As Deliveries Drop

tesla highland front
(Tesla)
tesla highland front
The Model 3 was recently updated. (Tesla)

Tesla’s first quarter deliveries fell compared to the same period in 2023 and its stock dropped on the news.

Tesla’s share value was down more than 5% at the time this story was published, as its 386,810 global deliveries were tens of thousands short of most Wall Street expectations.

Tesla delivered 412,180 vehicles during the first quarter of 2023.

Tesla cited several factors behind the decline, including downtime required to update its assembly plants for a redesigned Model 3, terrorists attacks affecting supply shipments in the Red Sea and an arson attack on its Berlin, Germany, factory that led to a week-long closure.

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A total of 369,783 Model 3 and Model Y vehicles were delivered, while the Model S, Model X and Cybertruck combined for 17,027, which was up from 10,695 for just the Model S and Model Y in 2023. However, tesla produced 433,371 during the quarter.

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cybertruck side
(American Cars And Racing)Credit: American Cars And Racing

Tesla has been frequently adjusting prices recently to better meet the current market conditions, with the Model 3 and Model Y seeing the most changes. Tesla delivered 1.2 million Model Ys last year, which made it the best-selling vehicle in the world.

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Elon Musk also announced last week that all Teslas that are compatible with the $12,00 Full Self-Driving semi-autonomous assist feature are eligible for a month-long free trial.

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Along with a slowing of the electric vehicle adoption rate in the U.S., Tesla has been facing increasing competition in China from local brands.

Rivian stock also dipped today as it announced 13,588 deliveries for the quarter, which was slightly below the pace required to meet previous guidance that it will deliver 57,000 vehicles this year.

This is a developing story. Check back for updates.