Tesla Reports ‘Significantly’ Lower Car Sales, Amid New EV Competitors – Tech Times

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New electric vehicle competitors prove to be hurting the market leader as Tesla has recently reported a sharp fall in its car sales, delivering only 386,810 vehicles for the first three months of the year, 8.5% lower than last year.

The revised version of the Model 3 sedan was phased in at the company’s Fremont, California production, contributing to the fall.

It claimed that less delivery was also caused by plant closures brought on by Red Sea shipping diversions and an arson assault that destroyed the power to its German factory.

(Photo : ODD ANDERSEN/AFP via Getty Images) A Tesla Model y car stands in front of the company’s plant as Tesla CEO Elon Musk visits the company’s electric car plant in Gruenheide near Berlin, eastern Germany, on March 13, 2024, as employees resumed work after production had to be halted due to a suspected arson attack that caused a power outage.

Tesla slashed costs by much to $20,000 on certain models last year. It briefly removed $1,000 from the Model Y, its best-selling car in March. Investors were alarmed by the reductions because they reduced the company’s profit margins.

Sources indicate that Tesla’s sales decline is the first time the company has seen a decline in vehicle deliveries since 2020. In January, Tesla anticipated “notably lower” sales growth this year in a letter to investors. According to the corporation, it is situated between two major growth waves: the Model 2, a new, smaller, and less costly car, and the global expansion of the Models 3 and Y. 

Read Also: Rising Car Theft Cases in Canada Linked to Criminals Exploiting Apple AirTags 

Tesla’s Dwindling Dominance

New York Times states that the decline in sales is the most recent indication that Tesla is losing market share in the electric vehicle industry. This year, the company’s shares have dropped thirty percent as investors worry that the corporation isn’t doing enough to keep up with the fierce competition. 

While it invented mass-market electric vehicles, Tesla’s lineup is getting older. Since 2020, Tesla has only released one entirely new model: the Cybertruck, a futuristic pickup that debuted in small quantities last year. With a starting price of over $80,000, Tesla’s most affordable model is expected to appeal only to wealthy early adopters.

Although Tesla is developing an electric vehicle that would cost about $25,000, it is not anticipated that the model will be widely available until 2026. For the time being, Tesla’s primary sales vehicles continue to be the Model 3 sedan and the Model Y sport utility vehicle.

Mr. Musk hasn’t made it apparent how the business intends to pick up steam. However, many of the left-leaning consumers who are most inclined to purchase electric cars have become hostile due to his divisive remarks and support of right-wing conspiracy theories. 

Tesla’s EV Competition

Xiaomi is one of the newest rivals to Tesla, having just announced the SU7 EV Sedan. Xiaomi began taking orders for its SU7 electric vehicle sedan on Thursday after revealing the vehicle’s starting price of $29,870. Pre-orders allegedly hit 88,898 on Friday night, the first day.

In an attempt to jumpstart sales, Xiaomi also presented two more limited-edition “Founder’s Edition” models of the car, which come with free appliances like refrigerators. The first 5,000 of these cars went quickly out of stock when it opened for orders on Thursday.

As a direct rival to Tesla, BMW also presented the Vision Neue Klasse X, a new electric vehicle that promises improved dynamics, efficiency, driving pleasure, and precision thanks to cutting-edge powertrain and chassis control technologies. 

Related Article: Biden’s Electric Vehicle Push Gets New Legislation, Further Curbing Carbon-Emitting Vehicles 

Written by Aldohn Domingo

(Photo: Tech Times)

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