Tesla is expected to report weaker sales next quarter and is running out of excuses.
Analysts estimate the automaker will report on Tuesday that it delivered 441,019 tram in the second quarter, down 5.4% from a year ago. It would be the second straight quarter of decline, something Tesla last posted when it phased out its first model, the Roadster, in 2012.
Tesla has turned the page on a number of issues that contributed to its struggles earlier this year, including a suspected arson attack on its factory near Berlin and shipping diversions related to conflict in the Red Sea. That leaves the company with little excuse for its sales decline beyond a relatively simple issue: Tesla’s older lineup is having a harder time keeping up with newer products from rival electric carmakers.
“It’s difficult to grow when you have increased competition and product lines,” said Tom Narayan, global auto analyst at RBC Capital Markets, who has a buy rating on Tesla stock. It’s a bit boring right now.”
Managing director Elon Musk has tried everything to stimulate demand for Tesla cars, including cutting prices and offering preferential pricing. lease transactionBut the price cuts did not stop the company’s sales from slowing in the second half of last year, before giving way to a decline as the overall electric vehicle market cooled.
Musk also announced deep layoffs in April, affecting more than 10% of Tesla’s employees, including sales staff. While that could help the company save cash, it could also hurt its Q2 deliveries.
Customers new to electric vehicles often have a lot of questions battery range, charging station and software-based features. However, Musk is increasingly betting on a primarily online sales process and encouraging consumers to place Tesla orders without visiting a showroom.
Tesla is having difficulty building on its success Model Ythat is best selling car in the world last year. The sport utility vehicle has been on the market since 2020, while Sample 3 The sedan debuted three years earlier.
The company’s first pickup truck, inspired by Blade Runner Electric Truckhas had a slow start since production began late last year. Tesla has has been withdrawn the truck many times, including issues related to the accelerator pedal and windshield wiper.
Investors have shrugged off several analysts who have lowered their estimates for Tesla’s vehicle deliveries in recent weeks. While the stock is still down 20% for the year, Musk has buoyed the stock by promising new models as early as the end of the year. He has also talked up the prospects for the company’s humanoid electric vehicle. robot and plans to launch a dedicated robotaxi in August.
Musk received a major vote of confidence last month, when shareholders voted to re-approve his $56 billion compensation package.
“We see more investors shifting their focus to the Robotaxi event on March 8,” Ben Kallo, a Robert W. Baird analyst with a buy rating on Tesla shares, wrote in a report last week. 8″. “We see Q2 deliveries as particularly important for full-year numbers and whether 2024 is a growth year, however, we think the focus will remain skewed towards the long until Robotaxi launches.”
Kallo expects Tesla to deliver 435,200 units this quarter and about 1.83 million for the year, only a slight increase from the 2023 total. Even though the company pledged in April to introduce new models early next year, but it did not provide any vehicle details and reiterated that growth will be “significantly lower” in 2024.
