Electric car maker Tesla has delivered a record number of electric vehicles in the first three months of this year. However, despite reducing prices, the company’s sales growth has been low on a quarter-on-quarter basis. The increasing competition and the weak state of the economy are the main reasons behind this.
Tesla has delivered 4,22,875 vehicles in the first three months of this year. This is an increase of 4 percent over the previous quarter and 36 percent over the same period last year. company Chief Executive Elon Musk said in January that Tesla could deliver 2 million vehicles this year. This would be an increase of about 52 per cent over the previous year. Investors are not happy with Musk’s bid to reduce prices and increase sales as this will affect margins. Tesla earlier this year slashed the prices of its EVs by up to 20 percent worldwide.
The price of the company’s Model Y was reduced from $65,990 to $54,990. Gene Munster, Managing Partner, Deepwater Asset Management, said, “If prices had not come down, things would have gotten worse. I think this is a sign of the economy in dire straits. The company’s sales have picked up, but This is lower than Musk’s estimate. Last year, Musk advised Tesla’s staff not to worry about the ups and downs of the stock market. Tesla’s share price had decreased significantly last year. The reasons behind this were the decrease in demand for the company and Musk’s purchase of the microblogging site Twitter.
Musk said in an email to Tesla workers that he believes Tesla will be the most valuable company in the long term. He said, “We have consistently performed very well and the market will accept that. I believe Tesla will be the most valuable company in the long term. Don’t be worried about the volatility of the stock market.” Along with this, Musk had also asked the staff to speed up the delivery of the electric car to the customers. Since Musk’s takeover of Twitter, investors are apprehensive that he Tesla are ignoring. Musk bought Twitter for about $44 billion.