Tesla, the electric vehicle giant, has encountered its first year-over-year drop in sales since the onset of the pandemic, as heightened competition from both Chinese and Western automakers chips away at demand. The company reported a production of 433,000 vehicles, but deliveries fell short at 387,000 units. This represents not only a decrease from the 484,507 cars delivered in the final quarter of 2023 but also a decline from the sales figure of 422,875 vehicles in the first quarter of the previous year.
As a result of these disappointing figures, Tesla shares plunged by 7% in premarket trading. This decline adds to the woes of investors, as Tesla's market capitalization has already slumped by over $250 billion since the beginning of the year. The electric-car maker's stock took a further hit on Tuesday following the release of its weaker-than-expected first-quarter delivery numbers.
