Tesla deliveries may disappoint. . . again

Stifel CEO Stephen Gengaro says there are several to Tesla and its stock valuation.

Electric vehicle maker Tesla is expected to post the second consecutive quarterly drop in deliveries amid a fierce festival in China and slowing demand for electric cars in the United States.

The Elon Musk-led automaker is expected to report quarterly effects on Tuesday and announce the delivery of 438,019 cars between April and June, according to a median estimate on forecasts from 12 analysts surveyed via LSEG. Seven of the analysts surveyed have lowered their expectations in the last 3 months.

Tesla’s sales slowdown comes after several years of immediate expansion that propelled the electric vehicle maker into the ranks of the world’s most valuable automaker. The company warned in January that sales growth in 2024 would be “significantly weaker” as months-long price cuts wore off.

Consumers are turning to hybrid gas-electric vehicles, prompting Tesla to address a growing stock of vehicles it seeks to sell through price cuts and other incentives, such as financing features and cheaper leases.

Musk won pay package thanks to shareholder vote, Tesla argues in court

Tesla is expected to announce a quarterly drop in sales. (Justin Sullivan/Getty Images/Getty Images)

Tesla saw a decline in deliveries in the first quarter of this year for the first time in about four years, and with an additional quarterly decline expected in the second quarter, some analysts expect the company to post its first annual decline in sales this year. .

Faced with customers’ personal tastes turning to electric cars and fierce festivals overseas, Tesla plans to unveil its robotaxis plans on Aug. 8, with the goal of promoting its “Full Self Driving” software. The company has not yet revealed when production will begin or how many of them will be made.

MUSK SAYS TESLA’S AFFORDABLE EVS ARE COMING NEXT YEAR

Tesla has noticed sales plummeting this year due to an electric vehicle worth the war in China and U. S. consumers turning to hybrids. (Joe Raedle/Getty Images/Getty Images)

Tesla also plans to introduce new models to its EV lineup, adding more affordable options. Musk discussed those plans at the height of a recent earnings call.

“In terms of the new product roadmap, there has been a lot of communication about our next line of vehicles in recent weeks,” Musk said. The company’s earnings will come beyond April. “We have updated our long-term vehicle lineup to push the launch of new models before the start of production discussed further in the second part of 2025. Therefore, we expect it to be more in early 2025, if not at end of this year. “

VANDALS ON TESLA’S CYBERTRUCK SPRAY PAINT FLEET IN FLORIDA WITH ‘F— ELON!’

Musk said in April that the company plans new models that could go into production in late 2024 or early 2025. (Slaven Vlasic/Getty Images for The New York Times/Getty Images)

“These new vehicles, by adding more models, will use facets of the next generation as well as facets of our existing platforms and will be able to be produced on the same production lines as our existing vehicle line,” Musk added.

“So it doesn’t have a new factory or a big new production line,” he explained. “It will be manufactured much more successfully on our existing production lines, and this will allow us to succeed with a capacity of more than 3 million cars when fully realized. “

tesla

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Musk didn’t elaborate on the potential price diversity for newer vehicles, so it’s unclear whether it will fall at or near the $25,000 threshold discussed above, or if it will be closer to the Model 3, Tesla’s affordable maximum. offer, which starts at around $39,000.

Tesla inventory is down 24% from a year ago. Its inventory is down about 14. 5% so far this year, which explains Monday’s spike.

Reuters contributed to this report.

Leave a Comment Cancel Reply