Tesla Stock Drops 4% as Q1 Deliveries Miss Expectations

Tesla Inc. (TSLA.US) experienced a notable decline of over 4% on Wednesday, closing at $256.04. The drop was primarily driven by the company's first-quarter delivery figures, which fell short of market expectations. Tesla delivered 336,681 vehicles in the first quarter, significantly below the anticipated 390,343 vehicles. This figure also represents a decrease from the previous quarter's 495,570 vehicles, raising concerns among investors about the company's growth prospects.

Tesla's performance in China also played a role in the overall decline. The company sold 78,828 units of Model 3 and Model Y vehicles in March, which, while impressive, did not offset the broader market disappointment. The first-quarter delivery numbers for Model 3 and Model Y were 323,800 units, a 12% decrease from the previous year and below the market estimate of 381,536 units. This underperformance in delivery numbers has raised concerns among investors about the company's ability to meet future delivery targets and maintain its growth trajectory.

The underwhelming delivery figures have led to a broader market reaction, with Tesla being the worst performer among the major technology companies in the U.S. market. This has raised concerns about the company's ability to meet future delivery targets and maintain its growth trajectory. The market's reaction underscores the importance of delivery numbers as a key performance indicator for Tesla, and the company will need to address these concerns to regain investor confidence.

In Europe, Tesla's sales also faced challenges. In March, Tesla's registrations in the Netherlands decreased by 61% compared to the same period last year, totaling 1,536 vehicles. Similarly, registrations in Denmark dropped by 65.6% to 593 vehicles, and in Sweden, sales fell by 63.9% to 911 vehicles. In France, Tesla registered only 3,157 electric vehicles, a 36.8% decrease from the previous year. On a quarterly basis, Tesla's sales in France decreased by 41.1%, in Sweden by 55.3%, in Norway by 12.5%, in Denmark by 55.3%, and in the Netherlands by 49.7%. These declines highlight the challenges Tesla is facing in maintaining its market share in key European regions.