Wall Street has sounded the alarm for weeks that the transition to electric vehicles may be stalling, despite billions in government subsidies and huge investments by auto giants.
Teslas latest sales figures suggest that the pullback may be worse than thought and beyond one companys ability to fix.
Teslas numbers undershot forecasts. The car makers stock fell nearly 5 percent on Tuesday after it reported deliveries of 387,000 cars worldwide in the first quarter the Evercore ISI estimate was 443,000 in its first year-on-year quarterly decline since 2020.
That has contributed to a more than 30 percent decline in Teslas stock, which has made it one of the worst performers on the S&P 500 this year.
Tesla had warned of notably lower growth this year. The company has faced setbacks including a suspected arson attack on its German gigafactory and shipping delays tied to the turmoil in the Red Sea. Meanwhile, high interest rates and the rise of cheaper Chinese E.V.s are sapping global demand and eating into Teslas once dominant market share.
Some Elon Musk critics including Ross Gerber, an outspoken Tesla investor laid the blame squarely on the companys C.E.O., saying that his toxic behavior had absolutely damaged the brand. (Musk has said little about the Tesla numbers, except to call Gerber an idiot, and to note it was a tough quarter for all E.V. makers.)
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What Teslas Troubles Signal for the Electric Vehicle Market - The New York Times
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