Tesla inventory (TSLA) is tumbling after the EV maker reported a major supply miss for the primary quarter. The Q1 supply report comes after Tesla warned in January that its automobile quantity progress charge can be “notably decrease” than in 2023.
For Q1, Tesla reported 386,810 international deliveries, nicely beneath estimates of 449,080 as compiled by Bloomberg. Tesla produced 433,371 autos, which was additionally beneath estimates of 452,976.
Tesla’s Q1 supply complete is a major drop sequentially from the fourth quarter, throughout which it delivered 484,000 autos. However extra regarding to traders is that the Q1 determine represents a year-over-year decline in comparison with Q1 final yr, when Tesla delivered 423,000 autos. Tesla’s Q1 determine is the primary annual Q1 decline in deliveries since 2020.
Tesla inventory was down 6% in early buying and selling following the discharge of the report.
“Whereas we have been anticipating a foul 1Q, this was an unmitigated catastrophe 1Q that’s laborious to elucidate away,” Wedbush analyst Dan Ives mentioned in a be aware shortly after the report’s launch. “We view this as a seminal second within the Tesla story for Musk to both flip this round and reverse the black eye 1Q efficiency. In any other case, some darker days might clearly be forward that would disrupt the long-term Tesla narrative.”
Trying throughout mannequin strains, Tesla mentioned it produced 412,376 Mannequin 3 and Mannequin Y autos and delivered 369,783. Tesla’s reported manufacturing of its “different fashions,” which now embrace the Cybertruck in addition to the costlier Mannequin S and Mannequin X autos, got here in at 20,995, with deliveries standing at 17,027.
“The discrepancy between deliveries and manufacturing implies ~46k in incremental stock, which confirms that past the recognized manufacturing bottleneck [in Fremont and Berlin], there might also be a critical demand subject,” Deutsche Financial institution’s Emmanuel Rosner wrote in a be aware following the discharge.
Tuesday’s supply report comes after Tesla hiked costs of its in style Mannequin Y SUV on Monday throughout all three trim ranges by $1,000. Tesla did the identical in China, with the Mannequin Y Lengthy Vary model rising by 5,000 yuan ($675) for a complete value of 304,900 yuan and the Efficiency model rising by 5,000 yuan to 368,900 yuan.
“Though the corporate most just lately raised costs within the US and China as beforehand previewed, we consider it could should revert, posing additional draw back dangers to ASP for the remainder of the yr,” Deutsche Financial institution’s Rosner added.
Tesla additionally revealed that it’ll report first quarter outcomes after the bell on Tuesday, April 23.
Pras Subramanian is a reporter for Yahoo Finance. You possibly can observe him on Twitter and on Instagram.
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