On Tuesday, Tesla released delivery data for the first quarter. Tesla delivered 38,6810 vehicles in the first quarter. This figure is far lower than analysts' average estimate of 44,9080 vehicles. This is the first year-on-year decline since the pandemic. The number of cars produced in the first quarter was 433,371, which also fell short of the market estimate of 45,2976 units.

The main model Model 3/Y delivered 369,783 units, down 10% from the previous year, falling short of the estimated 426,940 units; production was 412,376 vehicles, which also fell short of the estimated 439,194 vehicles.

Tesla expanded its product line at the end of last year to launch a Cybertruck with a stainless steel case in the US, but the company didn't say how many Cybertrucks it produced and delivered.

Tesla also did not release quarterly car sales by region, and the US and China have long been its biggest markets. The company manufactures Model S, X, 3, and Y in Fremont, California, the Model 3 and Y in Shanghai, and the Model Y at plants outside of Austin and Berlin. Model Y sports utility vehicles and Model 3 sedans accounted for 96% of fourth-quarter deliveries.

On the other hand, Tesla's rival, American electric vehicle manufacturer Rivian, delivered 13,600 vehicles in the first quarter, exceeding market expectations of 11,900 units.

As of press release, Tesla has dropped nearly 6%, and Tesla's stock price has dropped nearly 34% so far this year, making it the worst performer in the S&P 500 index.

Tesla faced the double impact of declining demand for electric vehicles and high interest rates in the first quarter. Analysts had previously lowered their expectations for Tesla's delivery volume. Some analysts pointed out that Tesla would experience the first year-on-year decline in sales since the beginning of the pandemic.

Musk issued a warning to investors in January of this year, saying the company was in between two major waves of growth. The first wave of growth was due to the introduction of the Model 3 sedan and Model Y sports utility vehicle, while the next wave of growth is expected to stem from the upcoming Model 2 model priced at around $25,000. Production of this model is scheduled to begin at the end of next year.

Although the next generation model is the key to growth, since production of this model is not expected to begin until late next year, this means that the company may face the risk of slowing growth until then. After the company's stock price experienced a sharp drop of up to 350 billion US dollars, investors' confidence was thwarted, and Tesla is stimulating sales through other methods (such as price adjustments, promotions, etc.) to avoid a year-on-year decline.

Editor/Somer