Tesla, which has grown accustomed to strong growth, reported a decline in car sales for the first three months of the year even as other automakers' models appeared to gain popularity.
Elon Musk's company said it delivered 387,000 cars worldwide in the first quarter, down 8.5% from 423,000 in the same period last year.
The sales decline is the latest sign that Tesla's dominance in the electric vehicle market is waning. The company's stock price has fallen 30% this year as investors worry that the company is not doing enough to cope with increasing competition.
In China, Tesla faces BYD and dozens of other rivals aiming to expand globally. In Europe, established car manufacturers such as Volkswagen and his BMW are introducing more attractive products. And in the U.S., electric vehicle sales aren't growing as fast as they did a year ago.
BYD announced early Tuesday that it sold about 300,000 electric vehicles, an increase of 13% year-on-year. The company also sold 324,000 plug-in hybrid vehicles in the first quarter, an increase of 15% from the same period last year.
Tesla pioneered electric cars for the masses, but its lineup is aging. Tesla's only completely new model since 2020 is the Cybertruck, a futuristic pickup truck that went on sale in limited numbers last year. The cheapest version Tesla says it can ship this year will start at about $80,000, limiting its appeal to wealthy early adopters.
Tesla is working on an electric car that would cost around $25,000, but the model is not expected to be available in large quantities until 2026. In the meantime, Tesla remains dependent on its Model Y sport utility vehicle and Model 3 sedan for most of its models. of its sales.
Tesla has repeatedly cut prices, a strategy that analysts say has not sufficiently stimulated sales and depressed profits. The company recently raised the prices of some cars slightly in the United States and elsewhere.
Musk has given no clear indication of how the company plans to regain momentum. At the same time, his polarizing rhetoric and support for right-wing conspiracy theories have alienated many of the left-wing customers most likely to buy electric cars.
