Tag: Tesla sales drop

By: Bloomberg , updated on: 02 July 2024, 07:29 am Tesla is likely to post another quarterly decline in sales, as its aging lineup struggles to keep pace with new offerings from rival EV makers. , Tesla's sales are expected to decline for another quarter as its aging lineup struggles to keep up with new offerings from rival EV makers. Read more Tesla has had a tough time with sales and is expected to post another weak quarter with sales declining by five percent. (AP) Tesla Inc. is expected to report another quarter of weak sales, and it is running out of excuses. Analysts expect the carmaker to report on Tuesday that it delivered 441,019 electric vehicles in the second quarter, a 5.4 percent drop from a year earlier. That would be the second consecutive quarterly decline, which Tesla last recorded in 2012 when it phased out its first model, the Roadster. Tesla The company changed its position on several issues that had plagued it earlier this year, including an arson attack at its factory near Berlin and shipping diversions related to a conflict in the Red Sea. That leaves the company with little excuse for its slowdown in sales other than a relatively straightforward problem: Tesla's older vehicles are having a hard time keeping up with newer offerings from rival EV makers. "It's harder to generate growth when you have increased competition and the existing model lineup gets a little stale," said Tom Narayan, a global auto analyst at RBC Capital Markets, who has the equivalent of a buy rating on Tesla's stock. Also read: Tesla's design changes confuse drivers and reduce the quality of EVs Chief Executive Officer Elon Musk has done everything he can to boost demand for Tesla's vehicles, including cutting prices and offering cut-rate leasing deals. But the discounts didn't stop the company's sales from sliding in the second half of last year, before they bottomed as the broader EV market cooled. Musk also announced massive staff cuts in April, affecting more than 10 percent of Tesla's workforce, including sales staff. While this may have helped the company conserve cash, it may have also impacted delivery figures in the second quarter. Customers new to EVs typically have a lot of questions about battery range, charging stations, and software-based features. Yet Musk is betting on a mostly online sales process and encouraging consumers to order a Tesla without visiting a showroom. Tesla is struggling with momentum The Tesla Cybertruck has been recalled multiple times, including for problems with the accelerator pedal and windshield wipers. (AP) Tesla is having a hard time maintaining the success of the Model Y, which was the best-selling vehicle in the world last year. The sport utility vehicle has been on the market since 2020, while Model 3 The sedan was unveiled three years ago. The company's first pickup, the Blade Runner-inspired Cybertruck, has had a slow start since production began late last year. The truck has been recalled multiple timesThis also includes problems related to the accelerator pedal and windshield wipers. Also read: Tesla may win the EV crown in the US as sales decline. See details Investors have ignored several analysts who lowered their estimates for Tesla's vehicle deliveries in recent weeks. While the stock is still down 20 percent for the year, Musk has boosted shares by promising new models by the end of this year. He has also talked up the prospects for the company's humanoid robots and plans to unveil a dedicated robotaxi in August. Musk received a major vote of confidence last month when shareholders voted in his favor. His $56 billion compensation package was re-approved, “We are seeing a growing number of investors gearing up for the robotaxi event on August 8,” Ben Kallo, a Robert W. Baird analyst with the equivalent of a buy rating on Tesla’s stock, wrote in a report last week. “We view Q2 deliveries as particularly important for full-year data and whether or not 2024 will be a growth year; however, we expect focus to tilt toward the long-term until the robotaxi is unveiled.” Kallo expects Tesla to deliver 435,200 units this quarter and about 1.83 million for the year, just above the 2023 total. While the company vowed in April to introduce new models early next year, it gave no details about the cars and reiterated that growth in 2024 would be “significantly lower.” First Publication Date: 02 July 2024, 07:29 AM IST Source link

Tesla is running out of excuses for its long-running sales decline