Tesla sales drop as competition in the electric vehicle market heats up

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Tesla accounted for 80% of electric vehicle sales in the U.S. in 2020, but that figure fell to 55% last year.

Tesla sales fell sharply last quarter as competition in the electric vehicle market increased worldwide and price cuts the company enacted months ago failed to entice more buyers.The Austin, Texas, company owned by Elon Musk, said Tuesday it delivered 386,810 vehicles from January through March, almost 9% below the 423,000 it sold during the same period last year. The company blamed the decline in part on phasing in an updated version of the Model 3 sedan at its Fremont, California factory.

'For Musk, this is a fork-in-the-road time to get Tesla through this turbulent period, otherwise troubling days could be ahead,' Ives said. 'With the ongoing debacle around margins, production and ongoing macro events, Musk will need to quickly take the reins back in to regain confidence in the eyes of Wall Street with a big few quarters ahead.'Automakers around the globe have indeed rolled out EVs aimed at competing with the likes of Tesla's Model Y and Cybertruck.

 

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