Tesla Sales Drop More Than Expected

Tesla Sales Drop , More Than Expected.<br />The automaker has posted its first yearly drop in sales since the onset of the pandemic, CNN reports. .<br />The company reportedly built <br />433,000 units but only delivered 387,000.<br />That's significantly less than the 484,507 vehicles <br />it delivered in the last three months of 2023.<br />Tesla shares fell 5% on April 1. .<br />Tesla partially attributed the sales <br />drop to increased production of the <br />updated Model 3 at its factory in Fremont.<br />The company also cited factory shutdowns caused by ships being diverted from the Red Sea because of attacks by Iran-backed Houthi militants, CNN reports.<br />The company also cited factory shutdowns caused by ships being diverted from the Red Sea because of attacks by Iran-backed Houthi militants, CNN reports.<br />Additionally, its factory in Germany shut down for a week because of an arson attack. .<br />Increased competition from brands such as <br />China's BYD have also impacted sales, CNN reports. .<br />Increased competition from brands such as <br />China's BYD have also impacted sales, CNN reports. .<br />Wedbush Securities analyst Dan Ives <br />referred to Tesla demand in China as <br />"very soft coming out of the gates for 2024.".<br />While we were anticipating a bad first <br />quarter, this was an unmitigated <br />disaster that is hard to explain away, Wedbush Securities analyst Dan Ives, via note to clients.<br />We view this as a seminal moment <br />in the Tesla story for Musk to either <br />turn this around and reverse the <br />black eye first quarter performance. , Wedbush Securities analyst Dan Ives, via note to clients.<br />Otherwise, some darker days could <br />clearly be ahead that could disrupt <br />the long-term Tesla narrative, Wedbush Securities analyst Dan Ives, via note to clients