Source: Wall Street News
Some analysts pointed out that Tesla may experience its first decline in sales since the beginning of the pandemic, and analysts have lowered their expectations for Tesla's Q1 delivery volume. According to reports, Tesla may announce first-quarter deliveries and production volumes on Tuesday morning.
$Tesla (TSLA.US)$Facing the double impact of declining demand for electric vehicles and high interest rates, analysts lowered their expectations for Tesla's delivery volume at the end of the first quarter. Some analysts even pointed out that Tesla may experience the first year-on-year decline in sales since the beginning of the pandemic.
According to a Bloomberg survey, analysts generally expect Tesla to deliver 449,000 vehicles in the Q1 quarter, down more than 7% from the Q4 quarter of 2023, and failed to reach peak performance in the fourth quarter of the normal sales season.
Analysts are particularly concerned about whether Tesla will be able to deliver more than 422,800 vehicles in the first quarter of 2023 to avoid the first year-on-year decline since the second quarter of 2020.
Canaccord Genuity analyst George Gianarikas wrote in a report on Monday: “Supply restrictions may have caused Tesla to lose about 95,000 deliveries. Tesla may have produced about 430,000 cars in the first quarter, down about 13% from the previous quarter. Tesla may announce first-quarter deliveries and production volumes on Tuesday morning.”
Tesla's stock price fell 2.6% in midday trading on Monday, and finally closed down 0.32%.
Tesla promotes “fully autonomous driving” function, Musk's new order may affect the speed of sales
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, so Tesla is stimulating sales through other methods (such as price adjustments, promotions, etc.) to avoid a year-on-year decline.
According to media reports, in the last week of March, Tesla CEO Musk introduced a new order that may slow down the sales process, requiring every North American customer to experience a short-range test drive to test the “fully autonomous driving” assisted driving function promoted by the company but whose name may be misleading.
Several strategies Tesla has adopted in promoting its “fully autonomous driving” features, including free trials, price discounts, and increased advertising, aimed at deepening the market's understanding of its autonomous driving technology.
Specifically, to attract consumers, Tesla began offering a one-month free trial service with a normal subscription fee of $199 per month, or $1.2 for a one-time purchase. This is just one of a few perks Tesla uses to lure consumers; others include a temporary $1,000 discount and free supercharging service. Additionally, Tesla has increased its advertising efforts on Google and X (social media services owned by Musk).
Editor/jayden