Tesla, the leading electric vehicle (EV) maker, is anticipated to report a 6% decrease in deliveries for the June quarter, marking its first consecutive quarterly decline. This comes amidst heightened competition in China and sluggish demand due to a lack of new affordable models. Analysts, on average, expect Tesla to deliver 438,019 vehicles from April to June, with several lowering their forecasts over the past three months.
The company’s growth trajectory has slowed following years of rapid expansion, compounded by reduced pricing strategies losing effectiveness.
Additionally, Tesla faces a shift in consumer preferences towards more economical hybrid vehicles, resulting in a growing inventory that necessitates discounts and incentives. Earlier plans for a new, cheaper electric vehicle have been paused in favor of advancing autonomous driving technology for potential robotaxis, a move that has sparked investor concern despite strong support for CEO Elon Musk’s substantial compensation package.
Barclays analyst Dan Levy projects Tesla’s largest-ever 11% drop in second-quarter deliveries, highlighting ongoing challenges in the company’s operational landscape.
