Tesla shares slump after posting 'ugly' set of global sales figures
Vehicles The March, End Three 386,810 Of Tesla Months In Over The About The Prior Handed From To 20% Quarter Down
Tesla posted a global fall in quarterly deliveries for the first time in nearly four years and missed analysts' estimates, a performance some described as "ugly" as price cuts failed to stir up demand in a highly competitive market.
The Elon Musk-led company's shares fell sharply at one stage. Despite the fall, which adds to a nearly 30% slide in value so far this year, Tesla's market capitalisation was still well above the combined valuation of Toyota, Mercedes-Benz, and Porsche.
Tesla handed over about 386,810 vehicles in the three months to the end of March, down 20% from the prior quarter.
Wedbush Securities analyst Dan Ives called the results "an unmitigated disaster ... that is hard to explain away" and termed it as a seminal moment for Tesla. "This was a train wreck into a brick wall quarter for Musk & Co," he wrote in a research note.
The company attributed the drop in volumes to its efforts to prepare the Fremont factory in California to handle increased production of the updated Model 3 and shutdowns at its Berlin plant due to the impact of the Red Sea conflict and an arson attack.
Tesla has been facing intense competition in China from local players including market leader BYD - which overtook the US company as the largest electric car maker in the fourth quarter - and new entrant Xiaomi.
However, Tesla managed to steer ahead of BYD, which sold about 300,000 battery-electric vehicles in the quarter.
Gene Munster, managing partner at Deepwater Asset Management, called the quarter "ugly" for Tesla, blaming high interest rates and cooling excitement around electric cars.
Meanwhile, shares of China's Xiaomi surged as much as 16% as the electronics maker's sporty electric vehicle launched last week drew strong interest, though a brokerage forecasts the firm would lose nearly $10,000 per car this year.
At the day's highest, the Chinese company had a valuation of $55bn (€51bn) which is higher than that of traditional US carmakers General Motors and Ford, at $52bn and $53bn, respectively.
Xiaomi's SU7, short for Speed Ultra 7, enters a crowded China electric car market with an attention-grabbing price tag — under $30,000 for the base model, cheaper than Tesla's Model 3 in China.
While the world's largest car market is challenging for newcomers due to a cut-throat electric price war and slowing demand, analysts have said Xiaomi has deeper pockets than most electric car start-ups and its smartphone expertise gives it an edge in smart dashboards — a feature prized by Chinese consumers.
Xiaomi has advised potential buyers of its sedan that they could face wait times of four to seven months, a sign of robust demand.
The company, which earns the majority of its $37.5bn revenue from selling smartphones, has already produced 5,000 SU7 vehicles it dubbed the "Founder's Edition" that it says come with additional accessories for early buyers.