Tesla shares collapsed amid the largest decline in sales in the company's history

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On Wednesday, April 3, Tesla published a report on the production and supply of electric vehicles to end customers. In the first quarter of 2019, production decreased by 10%, and supply by 31%. This is the largest drop in the history of the company. Shares of the automaker at the auction on Thursday lost immediately 8% of the cost.
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Why sales fall

In the first three months of 2019, Tesla delivered 63 thousand electric vehicles. This number includes 50,900 Model 3 sedans, 12,100 more expensive Model S sedans and Model X SUVs.

This is Tesla's first quarter-quarter sales decline in about two years. The results of the company disappointed investors, and after the opening of the exchange trading the next day after the publication of the report, its shares fell by 8%.

Sales in the first quarter of the new year were lower than in the last quarter of the previous year for several reasons. One of them - Tesla sought to complete many sales before the end of the year, as it would allow US buyers to take advantage of the state subsidy for the purchase of an electric car. In 2018, its size was $ 7,500, and in 2019 it was reduced by half.

In addition, the company for the first time in its history began selling Model 3 in China and Europe. Working in overseas markets has led to many logistical problems and costs. As a result, a large number of cars will be delivered to customers in the next quarter, which means the numbers in the next report will be higher.

What are the problems of Tesla

The fall in stocks contributes to the news background around the company as a whole - bad numbers in the report were not the only problem. So soon there will be a hearing on the suit of the US Securities and Exchange Commission against Ilon Mask. The regulator accuses the businessman of violating the ban on the publication of important data about the company in social networks (we wrote about this earlier).

The fall in sales is bad for the company, including because Tesla needs to pay off significant debts.

Perspectives

Despite the disappointing report data in Tesla are confident that the company will be able to rectify the situation. Sales of electric vehicles displayed in reports are recorded only when the client physically receives the car, and not when it prepays and reserves it.

This means that the data in the sales report cannot directly indicate a drop in demand. Therefore, the company announced that it plans to fulfill the annual sales plan - earlier on Twitter, Ilon Musk announced plans to produce 500 thousand electric vehicles in 2019, Tesla is planning to officially produce 360-400 thousand vehicles.

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