Tesla's vehicle deliveries have plunged to their lowest point since 2022, with sales dropping 13 percent in the first quarter of 2024 compared to the same period last year. The electric vehicle maker reported delivering 336,681 vehicles between January and March, falling well short of analyst expectations of 372,410 units.
The disappointing sales figures come as Tesla faces growing consumer pushback over CEO Elon Musk's controversial public statements and political activities. This represents a major setback for the company, which had previously maintained years of consistent growth in deliveries.
The latest numbers mark a stark contrast to Musk's earlier promise that Tesla would bounce back to growth in 2024, after experiencing its first-ever annual decline in deliveries last year. Industry analysts suggest that Musk's polarizing public persona may be driving away potential customers and impacting the brand's appeal among certain consumer segments.
The 13 percent year-over-year decline puts Tesla's quarterly deliveries at their weakest level in nearly three years. The actual sales of 336,681 vehicles fell substantially below market expectations, with analysts having predicted deliveries of over 372,000 units.
This downturn in sales poses questions about Tesla's market position and growth trajectory, particularly as traditional automakers continue expanding their electric vehicle offerings. The company now faces the challenge of rebuilding consumer confidence while navigating increased competition in the EV market.