Tesla/unsplash
Tesla lost nearly $30 billion in market value due to a drop in quarterly deliveries for the first time in 4 years. Tesla shares fell about 33% overall.
The price cut failed to stimulate demand in a highly competitive market. This is reported by Reuters.
The shares of Elon Musk's company fell 5.2% to $166.08 on April 2, losing about $30 billion in market capitalization. cost Overall, Tesla shares are down about 33% this year.
Tesla's first-quarter deliveries were down 8.5% year-over-year to 386 810 cars. During this period, the company produced 433,371 vehicles. According to the average forecast of 18 analysts polled by Visible Alpha, Tesla was expected to deliver 454,200 vehicles.
The automaker last recorded a decline in sales in the second quarter of 2020 , when the COVID-19 pandemic forced Tesla to halt production.
Tesla/unsplash
We note that Musk's company has faced stiff competition in China from local players, including market leader BYD and new entrant Xiaomi. The market value of Xiaomi, the maker of smartphones and home appliances, increased by $4 billion in one day after the release of its debut electric sports car, which costs less than the Tesla Model 3.