Tesla deliveries drop 31 per cent in first quarter

Tesla deliveries drop 31 per cent in first quarter

Tesla delivered significantly fewer vehicles in the first quarter, the electric carmaker said on Wednesday, reporting a 31-per-cent drop quarter-on-quarter to 63,000 and disappointing analysts’ expectations.

Deliveries include 50,900 of its best-selling Model 3, a drop of 20 per cent compared to the previous quarter.

Tesla, which has struggled to increase production over the past two years, has also been experiencing difficulties this year in its deliveries to China and Europe.

The California-based carmaker produced 77,100 vehicles in the first quarter, a decrease of 11 per cent.

The Model 3 is Tesla’s first to be aimed at the mass market and is important to the company’s efforts to generate revenue to repay investors and push development of other electric vehicles.

In March, Tesla said it will be shifting its sales to online only in a cost-saving move to help it lower the price of the Model 3 to 35,000 dollars.