Tesla’s deliveries for the June quarter are likely to decline by 3.7%, marking the first time the top EV maker will report two consecutive quarters of decline. The company is expected to deliver 438,019 vehicles for the April to June period, according to forecasts from 12 analysts polled by LSEG, with seven analysts lowering their expectations over the past three months. The results, set to be announced on Tuesday, reflect Tesla’s struggle with intense competition in China and slow demand due to the absence of affordable new models.
Tesla, after years of rapid growth that made it the world’s most valuable automaker, has hit a speed bump. In January, the company warned that delivery growth in 2024 would be “notably lower” as the benefits from months-long price cuts diminish. Additionally, a consumer shift towards cheaper gasoline-electric hybrid vehicles has led to a growing inventory for Tesla, prompting the company to implement price cuts and offer incentives such as cheaper financing options and leases to boost sales.
Barclays analyst Dan Levy predicts an 11% drop in second-quarter deliveries, potentially Tesla’s largest ever. Levy noted that a weak delivery result could highlight the challenging environment Tesla currently faces, as it contends with increased competition and changing consumer preferences.
