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Each week, Roula Khalaf, the Editor of the Financial Times, shares her favorite stories in this newsletter.
Tesla’s vehicle deliveries dipped more than anticipated during the first quarter of the year, making it their most challenging quarter since 2022. The electric vehicle giant grappled with a consumer pushback in Europe and sluggish demand in China.
Elon Musk’s US-based company managed to deliver 336,681 cars from January to March, which was significantly below the analysts’ prediction of 390,000. This also fell short of the 387,000 units they delivered during the same period the previous year.
This unexpected drop in deliveries caused Tesla’s shares to fall by nearly 5% in pre-market trading.
Meanwhile, Chinese automaker BYD surged ahead, reclaiming its position as the world’s leading EV manufacturer by selling a remarkable 416,388 electric cars in the same timeframe.
Musk, who has been a prominent supporter of former US President Donald Trump, appears to have tarnished Tesla’s reputation in Europe through his political engagements. Furthermore, delays in upgrading Tesla’s flagship Model Y have negatively impacted sales figures.
To turn things around, Tesla is banking on a resurgence in demand, following the recent launch of the revamped Model Y in China this past February and in Europe in March. However, these efforts haven’t yet brought a significant boost to their sales, as evidenced by a notable decline in new registrations in countries like France and Sweden.
Meanwhile, BYD is pressing on with its overseas expansion, showcasing its cutting-edge technologies and a strong lineup of hybrid and electric vehicles, which they emphasized throughout March.
Stay tuned, as this story is still unfolding.
