Tesla shipments fell 31% in the first quarter due to difficulties in shipping overseas

SAN FRANCISCO / BANGALORE (Reuters) – Tesla Inc. delivered a third-worst number of vehicles in the first quarter, as the electric car maker struggled to deliver its first deliveries of the Model 3 sedan to Europe and China. because of the increased length of journeys.

Tesla said it only delivered half of the quarter's numbers by March 21, with 10,600 vehicles still in transit at the end of the quarter. In comparison, only 1,900 vehicles were in transit at the end of the fourth quarter.

Tesla, whose number of deliveries did not meet badysts' expectations, should record a drop in shipments and announced in February that it would record a loss in the first quarter.

On Wednesday, Tesla said the drop in shipments and recent price cuts would have a negative impact on net profit for the quarter.

Tesla delivered 50,900 models 3 during the quarter, well below badysts' estimates of 58,900, according to Refinitiv's IBES data.

Shipments of all models fell 31% from the fourth quarter to 63,000 vehicles, including 12,100 X model sedans and SUVs.

Total production fell 10.92% from 86,555 vehicles to 77,100 vehicles in the fourth quarter. The company produced 62,950 models 3, compared to 61,394 in the fourth quarter.

Model 3 is the cornerstone of Tesla's growth strategy and CEO Elon Musk is under pressure to deliver the vehicle efficiently to new international markets, while maintaining working capital.

Musk is engaged in a public battle against US regulators as a result of his tweets about Tesla's production estimates.

Tesla is mainly focused on delivering the new sedan to buyers in Europe and China in the first quarter.

By the end of February, Tesla had announced that it would soon begin selling to its North American customers the version of its initially promised Model 3 sedan, worth $ 35,000, but that It was too late to make a difference in his quarterly deliveries.

Before Tesla announced its $ 35,000 version, badysts were expecting a drop in the number of models delivered to US customers, as demand for higher-priced versions declined and tax subsidies halved.

NEW CHALLENGES

The delivery of its model 3 to international markets posed new challenges for Tesla. Musk tweeted that the company had met "many unexpected challenges" when models 3 pbaded through the Belgian port of Zeebrugge in early February. More recently, poorly printed labels have delayed the entry of models 3 in Shanghai.

On the other hand, the arrival of Model 3 in Norway has led to an increase in Tesla's market share in this country. Model 3 was the biggest seller in Norway in March.

Tesla had warned in January that model 3 shipments would be about 10,000 units lower than first quarter production due to delivery delays.

In March, Tesla resumed the construction of cars for the North American market, leaving little time for these vehicles to be delivered to buyers in the United States and Canada. Musk has asked all Tesla employees to prioritize help with end-of-quarter shipments.

The company laid off workers, including about half of the hired team to deliver cars to the United States, and announced that it would close stores to cut costs. Since then, he has announced that he will maintain higher volume stores while announcing a 3% price increase for some models.