Analysts are lowering their estimates for Tesla’s car deliveries this quarter, as some even brace for the company’s first drop in EV sales in 4 years, Bloomberg reports.
According to Investor’s Business Daily, Tesla is expected to reveal first-quarter delivery and production data this week. Analysts who spoke to Bloomberg expect Tesla to deliver an average of 449,080 electric cars in the first quarter of 2024, down from the record 484,507 deliveries Tesla reported in the fourth quarter but higher than the 422,875 deliveries Tesla announced in the same period of ‘Last year.
According to Axios, financial data firm FactSet sets a higher estimate of 457,000 deliveries.
Tesla CEO Elon Musk at the grand opening of a Tesla electric car production plant in Germany on March 22, 2022. Photo by Christian Marquardt – Pool/Getty Images
Tesla on Monday also raised prices in the United States for its Model Y electric car, which was the best-selling car in the world last year according to data compiled by automotive business intelligence firm JATO Dynamics. It was the first electric car to hold this distinction. The base Model Y now costs $44,990 without a federal tax credit.
Tesla is on the path to a more affordable electric car, with founder Elon Musk telling investors in January that the company was working to create a next-generation electric vehicle to appeal to a broader audience. According to Musk, the car could be built as early as the second half of 2025.
Related: Tesla pay data leaked: How much Elon Musk’s workers make in the US now after some got raises
“Once it starts, it will be superior to any other manufacturing technology that exists anywhere in the world,” Musk said on the January earnings call.
Tesla’s slowing expectations could be the result of more competitors in the electric vehicle industry, declining public demand for cars, rising interest rates – or even founder Elon Musk’s reputation, according to exclusive industry reports obtained by Reuters on Monday.
An exclusive report from market intelligence firm Caliber showed that Tesla’s consideration score among US buyers dropped from 70% in November 2021 to less than half (31%) in February. According to Caliber polling, about 83% of Americans link Musk to Tesla.
Related: ‘Next Tesla’ Electric Car Startups Hit Slowdown: ‘Investors Want to See Demand’
Another survey that analytics firm CivicScience shared exclusively with Reuters indicated an increase in the percentage of buyers who may turn away from Tesla as founder Elon Musk’s public moves and statements, such as buying Twitter, could potentially affect the Tesla brand.
The survey found that 42% of respondents viewed Musk unfavorably, up from 34% two years ago.
Ed Kim, president of consultancy AutoPacific, told Reuters that a small but growing group of electric vehicle buyers “is increasingly disheartened by Elon Musk’s behavior and policies and is now finding viable alternatives to Tesla in the marketplace.” .
Despite the reports, Musk is currently the most followed person on X 179 million followers. She became the sixth person to surpass the 100 million follower mark in June 2022.