- Elon Musk-owned Tesla saw an 8% year-over-year decrease in electric vehicle (EV) production, with just 387K vehicles handed over in Q1 as the company dealt with a European plant fire and global shipping disruptions. BBC News (LR: 3 CP: 5)
- Analysts had expected around 455K vehicles for Q1, but those expectations were lowered in recent weeks. This was the first reported decline in deliveries since 2020 when the COVID pandemic disrupted operations. Daily Mail (LR: 5 CP: 5)
- Following the announcement, Tesla shares dropped almost 4%. Previously, Tesla's stock price had dropped over the past year because of higher interest rates and competition from other companies producing cheaper EVs. Yahoo News
- Since January, Tesla shares have fallen 33%. It was the weakest performer on the Nasdaq 100 Index performance, and the second-worst on the S&P 500. Bloomberg (LR: 3 CP: 5)
- This comes as weak sales in China have prompted Tesla to reduce Model 3 and Model Y production at its Shanghai plant because of stiffer competition. CNBC (LR: 3 CP: 5)
- Tesla implemented price reductions at the same time Chinese automakers have done the same. World News
Narrative A:
- This news is nothing to panic about. Tesla has sold more vehicles in the first quarter than its biggest competitor — Chinese carmaker BYD — regaining its position as the world's leading seller of EVs. Musk has a strategy and is likely to continue to outperform all other EV manufacturers.
BLOOMBERG (LR: 3 CP: 5)
Narrative B:
- Tesla is facing multiple problems, including increased competition. The root cause of Tesla's problems could be Elon Musk, as many observers believe the company would be better off if he stepped down as chief executive officer and focused solely on innovation. Musk's controversial social media posts and his association with right-wing politics may be negatively affecting sales.
FORTUNE
Nerd narrative:
- There's a 10% chance that Tesla will become the largest car company in the world (by sales) before Jan. 1, 2035, according to the Metaculus prediction community.
METACULUS (LR: 3 CP: 3)