Tesla Sales Drop 9% Due to Increased Competition and Slowdown in EV Market

Sales of Tesla vehicles dropped nearly 9% last quarter due to increased competition and a slowdown in electric vehicle sales. Tesla delivered over 386,000 vehicles from January to March, a decline from the previous year. Analysts expected higher sales. Shipping delays and a reworked Model 3 contributed to the slowdown. Incentives and discounts were not enough to keep demand growing. Tesla made price cuts and announced a short-term discount on its popular Model Y, reducing profit margins.

Tesla expects lower growth in demand as it prepares to launch the more affordable Model 2

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