Tesla, which has been used to rapid growth, reported a drop in car sales during the first three months of the year as models from other manufacturers appeared to gain ground.
The company run by Elon Musk saying It delivered 387,000 vehicles worldwide in the first quarter, down 8.5 percent from 423,000 vehicles in the same period last year. The sales figure was significantly below expectations.
The decline in sales is the latest sign that Tesla's dominance in the electric car market is waning. The company's shares have fallen 30 percent this year as investors worry that the company is not doing enough to respond to intensifying competition.
In China, Tesla faces BYD and dozens of other rivals with ambitions to expand around the world. In Europe, established automakers such as Volkswagen and BMW have introduced more attractive products. And in the United States, electric car sales are not growing as fast as they were a year ago.
BYD said earlier on Tuesday that it sold about 300,000 electric vehicles, up 13 percent from the same period a year earlier. The company also sold 324,000 plug-in hybrid vehicles in the first quarter, up 15 percent from a year earlier.
Tesla pioneered mass-market electric cars, but its lineup is aging. Tesla's only all-new model since 2020 is the Cybertruck, a futuristic pickup truck that went on sale in limited quantities last year. The least expensive version that Tesla says it can deliver this year starts at around $80,000, limiting its appeal to wealthy early adopters.
Tesla is working on an electric car that would cost around $25,000, but the model is not expected to go on sale in large numbers until 2026. Meanwhile, Tesla continues to rely on the Model Y sport utility vehicle and Model 3 sedan for production. Most. of your sales.
Tesla has repeatedly cut prices, but analysts say the strategy has reduced its profits without doing enough to stimulate sales. Recently, the company has modestly increased prices on some cars in the United States and China. The Model Y starts at nearly $45,000 before federal and state tax breaks, after a $1,000 increase announced this week.
Musk has not given a clear indication of how the company plans to regain momentum. At the same time, his polarizing statements and his endorsement of right-wing conspiracy theories have alienated many of the left-leaning customers who are more likely to buy electric cars.
Tesla shares fell about 5 percent in early trading Tuesday.
