Tesla Stock Is Tumbling Tuesday: What's Going On?

Tesla Inc TSLA shares are trading lower Tuesday after the company reported weak deliveries for the first quarter.

What Happened: Tesla said it produced 433,371 vehicles in the first quarter, down from 440,808 year-over-year. The EV maker delivered 386,810 vehicles last quarter, down from 422,875 year-over-year, representing the first year-over-year decline in deliveries since 2020. In the fourth quarter of 2023, Tesla reported production of 494,989 vehicles and 484,507 deliveries.

Tesla said it produced 412,376 Model 3 and Model Y vehicles and 20,995 other models. The company delivered 369,783 Model 3 and Ys and 17,027 other model vehicles.

Tesla said the decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at its Fremont factory, as well as factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.

Tesla shares have been under pressure in recent months as the broader EV industry battles waning demand. Tesla's margins have also been hurt by a pricing war with competitors. The EV maker reported worse-than-expected results in January and turned in disappointing delivery numbers. Shares appear to be reacting negatively Tuesday to continued weakness in deliveries.

Reports from last week also suggested that CEO Elon Musk told employees to install and activate Full Self-Driving software on all new vehicles being delivered in an attempt to boost subscription revenues and get people to recognize how far the technology has come.

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Tesla also noted in the release that it deployed 4,053 MWh of energy storage products in the first quarter, representing its highest quarterly deployment yet.

Tesla said it will report financial results for the first quarter after the market close on April 23. Analysts are anticipating earnings of 60 cents per share on revenue of $24.067 billion, according to Benzinga Pro.

TSLA Price Action: Tesla shares were down 5.39% at $165.78 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Tesla.