It probably hasn’t escaped your attention that many consumers are currently hesitant to buy new electric cars. But Tesla is being hit particularly hard—and there are several reasons for that. Not only are its models starting to feel a bit dated, but the CEO himself is also stirring up trouble.
Tesla’s EV Sales and Production Decline
Numerous analysts had already predicted that Tesla’s latest figures wouldn’t impress. But the reality is even worse than expected. Tesla sold 13 percent fewer cars worldwide in the first quarter. Between January and March, only 336,681 electric vehicles found their way to buyers.
Experts had forecast sales of around 390,000 units. During the same period, Tesla produced 362,615 electric cars—16 percent fewer than last year. The previous production forecast stood at roughly 421,000 units.
One of the main reasons behind this slump: Tesla is currently struggling with an aging model lineup. Sure, they unveiled an updated Model Y a few weeks ago, but deliveries are only just beginning and won’t impact the company’s numbers until at least the second quarter.
To make matters worse, the Cybertruck—a massive pickup with a fully electric drivetrain—appears to be flopping. Sales have fallen short of expectations, partly due to numerous shortcomings with the vehicle itself.
A new electric car from Tesla, based on the Model Y and potentially up to 20 percent cheaper, is now seen as a small glimmer of hope. In the U.S., that could mean a drop in the entry-level price from the current $42,490 to somewhere around $34,000. The model is already firmly planned for China, but it likely won’t be long before it makes its way to North America and Europe as well.
Is Elon Musk’s Role in Politics Hurting Tesla?
Looking ahead, Tesla may continue to face sales challenges. Elon Musk’s political involvement in the U.S., along with his controversial statements and appearances, appears to be turning off many potential buyers. More and more companies are also removing Tesla from their company car fleets—SAP, Hertz and Sixt, for example.
The whole situation is pretty wild, don’t you think?
