TSLA: Tesla Stock Nosedives After Deliveries Drop Way Under Low-End Guidance at 336,000

EV maker shipped 336,000 cars, falling under low-end consensus views of 370,000. The shares fell more than 6% at the opening bell.

📉 Tesla Shares Tumble 6%

• Tesla stock TSLA fell more than 5% from the get-go as the New York session popped. The EV maker posted its delivery numbers just minutes before the bell — and it was a keenly anticipated update. Turns out, Elon Musk’s car company couldn’t even meet the low-end guidance for the first quarter, which was 370,000.
• Tesla delivered 336,681 vehicles in the three months to March, a drop of 13% from last year’s first quarter. Wall Street’s average consensus views were sitting at 390,000 and the wildest ones were above 420,000.

📣 Growing Backlash Against Musk

• It was the weakest quarterly number since 2022 — it even lagged behind Chinese rival BYD 1211, which delivered 416,388 electric cars in the same period. BYD has eclipsed the American pioneer with more affordable vehicles, advanced technologies and hybrid models, together with the all-electric ones.
• Analysts attribute the disappointing number to the growing backlash against Elon Musk. The Tesla CEO has largely vacated his top seat at the company and keeps busy by firing government employees and giving pep talks in the Oval Office.

🤔 New Model Y Fails to Lift Sales

• Coming into Wednesday trading, shares of Tesla were down 34% on the year and more than 45% from the record high of over $480 hit in mid-December. Musk’s foray into politics appears to be turning off even the most loyal Tesla customers who take to the streets to protest, in addition to putting their cars up for sale.
• In a bid to buoy sales and keep the shares stable, Tesla updated its Model Y with a new design. The improved flagship launched in China in February and in Europe last month. But the upgrade has failed to lift sales.