Will Tesla struggle again in the second quarter

In the previous quarter, Tesla had a difficult delivery problem, and was only able to deliver 386,810 cars, down 20% from the previous quarter and 8.5% from the same period last year. Since Tesla occupies an extremely important position in the electric vehicle industry, the decline in the number of units sold by the company has also dragged down electric vehicle sales in general, and the US market in particular.

In the first quarter, Tesla encountered many practical issues affecting production, such as production line repairs and upgrades at the Fremont Plant to increase production of the new Model 3, and the Berlin Super Factory, which had stopped due to supply chain issues.

However, the difference between production volume and number of cars delivered in the previous quarter was 46,000 units, which suggests that Tesla is having a demand problem. Currently, as the second quarter comes to an end, market interest in the financial results Tesla will announce in the future continues to grow.

Wall Street's general forecast for Tesla's second quarter car deliveries was 450,000 units, down from 466,000 units in the same period last year. Since analysts continue to adjust forecasts to further drive them down, the most recent forecast has fallen below the original 450,000 units, which suggests the possibility that Tesla's car delivery forecast will be further lowered this week.

The European market seems to be a big problem for Tesla this year. According to Registrations Tracker, the number of Tesla car deliveries has already decreased by more than 60,000 units this year compared to the record year in 2023. Since most of this difference has occurred in recent months, Tesla is likely to have a tough second quarter in Europe.

In contrast, China remains one of Tesla's most important markets. Tesla's sales in China improved last month thanks to new government incentives such as interest rate cuts.

The situation in the US market is relatively uncertain. Tesla is also implementing incentives in the US, and recently the Model 3 Long Range Edition has just received federal tax credits, and there is a possibility that it will help bridge the gap between car delivery predictions and actual sales volume.