Tesla faces headwinds due to price cuts

Tesla is expected to report slow first-quarter deliveries next week due to reduced price cuts and increased competition in the electric-vehicle market, according to Reuters on Thursday.

The company, facing a potential slowdown in 2024, has been slow to update its models amid declining consumer interest and competition in China.

Analysts predict Tesla will deliver 458,500 vehicles in the first quarter, a slight decrease from the previous quarter.

The company’s aggressive price cuts have impacted margins and led to a decline in car values, with Tesla being the fastest-depreciating vehicle in the US.

Despite ongoing challenges, Tesla continues to focus on production of its next-generation electric vehicle.