Tesla's sales dropped in the last quarter because of more competition in the electric car industry, even though the company in Austin, Texas, reduced prices to attract more customers.
The electric car company said it made 433,371 vehicles and gave 386,810 from January to March this year. This is less than the same period last year, when they delivered more than 484,000.
Tesla explained that the decrease in deliveries was partly because of factories shutting down due to shipping issues in the Red Sea and a factory in Germany losing power after an arson attack.
“The drop in volumes was partly due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns due to shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin,” the company said Tuesday.
Facing higher competition from Chinese and Western car makers, Tesla lowered the prices of certain models in 2023, with some reduced by up to $20,000. Last month, the price of the Model Y, Tesla’s top-selling car, was cut by $1,000.
Tesla’s sales have fallen as the electric vehicle market in the U.S. has slowed down. Ford decreased production of its F-150 Lightning electric pickup and reduced the price of its Mustang Mach E electric SUV.
Tesla’s stock also declined by nearly 5 percent to $166.49 in midday trading Tuesday.
