Tesla deliveries expected to fall for 2nd straight quarter

Tesla is facing a potential hurdle as analysts predict a 3.7 per cent decline in deliveries for the June quarter. This would mark the first time the electric car leader has experienced two consecutive quarters of decline.

The slowdown is attributed to several factors, including increased competition in China, a lack of new affordable models from Tesla, and a consumer shift towards cheaper gas-electric hybrid vehicles.

This has led to an increase in Tesla’s inventory, which has prompted price reductions and incentives to sell the excess stock.

Some analysts even expect Tesla to post its first annual sales decline this year, with European sales particularly weak due to waning subsidies and lower demand from fleet operators.

Meanwhile, Tesla is focusing on its robotaxi project with an unveiling planned for August. However, production timelines and volume are unclear, leaving investors with questions about the company’s future trajectory.

Attribution: Reuters