San Francisco — Tesla reported a record decline in deliveries in the first quarter, falling short of analysts’ estimates and stoking fears that demand is slackening for the mainstream electric vehicle it introduced less than two years ago.
“It’s a disappointment. There’s no way around that,” said Gene Munster, a managing partner of venture capital firm Loup Ventures. “The big question is, what is demand?” Musk capped the quarter with a tweet referring to the work his delivery teams had done as the “most insane logistics challenge” he had ever seen. Tesla had a total of 10,600 vehicles in transit at the end of last month as the company started sales of the Model 3 in China and Europe. That is more than triple the number that were still making their way to customers at the end of 2018, though it is not unprecedented — more Tesla vehicles were in transit at September’s close.
The company had warned shareholders that first-quarter deliveries of the pricier Model S sedan and Model X sport utility vehicle probably would be lower than a year ago because customers rushed to buy in time for the full $7,500 incentive. “We’re past peak Tesla,” said David Kudla, CEO of Mainstay Capital Management, which bets against Tesla by shorting the stock. “There’s slowing demand for the Model 3 and there’s nothing else immediately in the pipeline.”