Friday's 3.6% drop capped a week in which Tesla shares fell nearly 6% due to weakening EV demand and a possible product revision.
Tesla shelved plans to create a sub-$30,000 EV, known as the Model 2, on Friday, Reuters reported. Three sources told Reuters that Tesla would focus on a self-driving robotaxi. Elon Musk remarked on X, his social media platform, that Reuters was "lying (again)." Musk announced on X after Friday's closing bell that Tesla would reveal the robotaxi on August 8.
This news capped a dismal start to the second quarter for Tesla, which lost over a third of its value and was the worst-performing S&P 500 company in the first quarter. However, Tesla's dismal week began on Tuesday when first-quarter delivery data missed Street estimates.
, Tesla delivered 386,810 globally in Q1, missing expectations of 449,080. It was down nearly 10% from last year's 423,000 Tesla deliveries. Tesla's deliveries decreased almost 20% from the fourth quarter. This was the first year-over-year dip in first quarter deliveries since 2020, when the US pandemic began.
Tesla's delivery total fell sequentially from its record 484,000 fourth-quarter deliveries. Following the publication, Deutsche Bank's Emmanuel Rosner noted that the disparity between deliveries and production suggests ~46,000 in incremental inventory, indicating a potential demand issue in addition to the existing manufacturing bottleneck in Fremont and Berlin.
Tesla upped the price of its most popular vehicle, the Model Y, a day before its terrible Q1 delivery report. In the US, Tesla raised Model Y costs by $1,000 across all three trim levels. In China, Tesla raised the Model Y Long Range and Performance models by 5,000 yuan ($675) to 304,900 and 368,900, respectively.
The startup started offering free self-driving software trials and zero-interest loans with different periods depending on down payment in China. With the Chinese EV market the most competitive in the world and Xiaomi selling out its first model in 24 hours, Tesla may have to drop costs again to boost demand.
Tesla's stockpile of Model Ys is thousands of dollars below MSRP despite the April 1 price bump for new customers. Tesla's website lists rear-wheel drive Model Y SUVs for $4,600 less than bespoke orders, and Long Range and Performance Model Ys for $5,000 less, depending on location.
Tesla upped the price of its most popular vehicle, the Model Y, a day before its terrible Q1 delivery report. In the US, Tesla raised Model Y costs by $1,000 across all three trim levels. In China, Tesla raised the Model Y Long Range and Performance models by 5,000 yuan ($675) to 304,900 and 368,900, respectively.
The startup started offering free self-driving software trials and zero-interest loans with different periods depending on down payment in China. With the Chinese EV market the most competitive in the world and Xiaomi selling out its first model in 24 hours, Tesla may have to drop costs again to boost demand.
Tesla's stockpile of Model Ys is thousands of dollars below MSRP despite the April 1 price bump for new customers. Tesla's website lists rear-wheel drive Model Y SUVs for $4,600 less than bespoke orders, and Long Range and Performance Model Ys for $5,000 less, depending on location.
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