April 2 (Reuters) - Tesla's first-quarter
deliveries fell 13%, hurt by backlash against CEO Elon Musk's
political stance, rising competition and its aging line up of
electric vehicles, sending its shares down more than 4% in
premarket trading.
It delivered 336,681 vehicles in the first quarter, down
from 386,810 units a year ago. Tesla was expected to report
about 372,410 vehicles, according to an average estimate of 15
analysts from Visible Alpha.
The electric automaker's stumbling sales indicate that the
one-time leading brand is reeling from the fallout of the
company not refreshing its vehicle lineup in years and Musk
embracing hard-right politics.
China's BYD is set to unseat Tesla as the top global EV
seller for the first time this year with a 15.7% market share,
ahead of Tesla's 15.3%, according to Counterpoint Research.
Musk has pledged a return to growth after Tesla's annual
deliveries dipped last year, but his advisory role to U.S.
President Donald Trump, through which he has been instrumental
in firing thousands of federal workers and cutting humanitarian
aid, has sparked discontent among some customers.
Protests at Tesla stores in the U.S. and Europe have spiked,
and Tesla cars are being vandalized. Some data indicates a rise
in Tesla owners trading in their vehicles.
Meanwhile, investors are waiting to see if refreshed models
like the Model Y and incentives have helped counter weak demand
and tough race from Chinese rivals including BYD
and European competitors such as Volkswagen
and BMW.
Tesla's sales in key European markets fell again in March,
with sales in France and Sweden dropping for a third straight
month.
Tesla began offering the refreshed Model Y with updated
styling and enhanced interiors in China late February and in the
U.S. and Europe last month.
Data from auto industry associations and analyst estimates
point to notable declines in Tesla sales during the first two
months of the year in the U.S., Europe, and China.
Tesla has indicated plans to launch a lower-priced model
based on its existing platform this year, but is yet to release
specific details about the vehicle.
Its pricey Cybertruck pickup, launched in late 2023, has
seen limited demand due to its polarizing trapezoidal design and
quality concerns. Tesla recently recalled nearly all
Cybertrucks to address a potential exterior panel issue.
While Tesla may see less pain from the new 25% tariffs on
imported vehicles due to its U.S.-based manufacturing, Musk has
said cost implications are "significant". Tesla has also warned
about potential retaliatory tariffs in response to the levies.