Tesla shares fall as much as 30% as it faces increased competition
After four years, Tesla's quarterly car deliveries are plummeting. Its shares have fallen as much as 30% this year, the effects of its price cuts diminishing as the automaker grapples with increased competition and softer demand. Deliveries have fallen 8.5% year-over-year; the last time a sales decline was seen was in the second quarter of 2020.
According to the company, the volume decline is related to its efforts to prepare its Fremont factory in California and increase production of the updated Model 3. It is also due to closures at its Berlin plant caused by shipment diversions resulting from the Red Sea conflict and an arson attack that occurred in early March.
The automaker has faced intense competition in China from local players, including market leader BYD, which surpassed the US company as the largest electric vehicle maker in the fourth quarter, and new entrant Xiaomi. Despite this, Tesla managed to surpass BYD, selling approximately 300,000 electric vehicles.
- Karen Hernández
