Tesla sales rise after brutal year of Musk boycotts but still fall short of expectations
NEW YORK – Sales of Tesla vehicles have risen over the past three months, but still fell short of expectations, in a possible sign that a recovery is possible after a year of brutal boycotts of Elon Musk’s policies.
The company said Thursday its sales rose 6% to 358,023, marking the first quarterly increase from the same period a year earlier in three years. The positive figure comes after a year of declining sales due to aging staff and boycotts over Musk’s right-wing political stances.
But the strength of the recovery is still uncertain.
Sales in the three months through March were 6% lower than the 381,000 financial analysts expected, according to a survey by researcher FactSet. They were also well behind the first-quarter peak, which extends into 2023. The company sold 423,000 vehicles in the first three months of that year, up nearly a fifth.
At the time, Tesla was the world’s largest electric vehicle manufacturer, a title it retained until the end of last year when it was forced to cede it to rival Chinese manufacturer BYD.
Tesla shares fell sharply in early morning trading on the news, falling 3% to $369 per share.
What likely helped push the numbers higher were cheaper versions of the Tesla X and 3 models introduced late last year. Details of models selling under $40,000 have not been disclosed but may be revealed when Tesla reports quarterly earnings on April 22.
Financial analysts expect Tesla to report that its net income will roughly double to 25 cents per share and revenue of $23 billion, according to FactSet.
The stock has fallen along with the market this year but is still up 30% from a year ago.
Valuation is also very high. Shares of the automaker were trading at 181 times expected earnings, compared with 22 times on the broader stock market.
It reflects something of a marketing victory for Musk, who has told investors to focus less on car sales and more on his chance to dominate a future where fewer people own cars, autonomous Tesla robotaxis are nearly ubiquitous and Telsa’s Optimus robots replace humans in factories and homes.
Before that future arrives, if it comes at all, European and Chinese electric vehicle manufacturers are stealing market share. Chinese manufacturer BYD recently reported that it produced 2.26 million electric vehicles last year, while Tesla produced 1.64 million electric vehicles, setting the new record.
This article was generated from an automated news agency feed without modifications to the text.
