San Francisco, CA – Electric vehicle manufacturer Tesla is set to announce a second consecutive quarterly decline in deliveries amidst challenges in both the Chinese and US markets. The Elon Musk-led company is expected to report delivery figures of 438,019 vehicles from April to June, based on estimates from 12 analysts polled by LSEG.
After experiencing rapid growth in previous years, Tesla is now facing a slowdown in sales, prompting the company to warn of lower sales growth in 2024 due to the impact of price cuts. The shift in consumer preference towards gasoline-electric hybrid vehicles has resulted in Tesla accumulating a surplus of inventory, leading to various sales strategies such as price reductions and incentives.
The decline in deliveries during the first quarter of this year marked the first decrease in nearly four years, fueling projections of the company’s first annual sales drop for the year. To counter this trend, Tesla is preparing to introduce new models to its electric vehicle lineup, including more affordable options as discussed by Musk during recent earnings calls.
Moreover, Tesla plans to unveil its robotaxis plans on August 8 to boost interest in its “Full Self Driving” software. However, production details and quantities remain undisclosed. Musk also mentioned the acceleration of new model launches ahead of schedule, potentially seeing production as early as late 2024 or early 2025.
Although specific pricing details for the new vehicles are yet to be revealed, Tesla’s stock has seen a significant decrease over the past year. With a year-to-date decline of approximately 14.5%, the company is exploring strategies to revamp its lineup in response to changing market dynamics and consumer preferences.