Tesla Rolls in With Its Worst Sales Miss Ever

Wall Street analysts were second-guessing their models just as Tesla’s first quarter came to a close. One after another reduced their estimate for vehicle deliveries. But it turns out they didn’t cut their numbers by nearly enough, because on Tuesday the electric carmaker led by its famously voluble CEO whiffed on Bloomberg’s average sales estimate by the most ever. Tesla’s shares fell 4.9%, extending their 2024 slide to a tremendous 33%, the second-worst showing in the S&P 500 Index. It wasn’t a total surprise, though, as red flags were flying for some time. Tesla had warned its rate of growth would be “notably lower” and the company did face multiple disruptions at its plant outside Berlin. But still, there’s Elon Musk. His inflammatory posting of far-right conspiracy theories (among other things) has turned off prospective buyers for whom a Tesla was once an aspirational purchase. “Is Elon’s brand damaging Tesla sales in the US?” asked Gene Munster, managing partner of Deepwater Asset Management. “It’s directionally a negative.”

While Tesla suffers, others appear to be picking up some of the slack (though EVs as a general proposition are having a tough time of it recently). Rivian Automotive built and delivered more electric vehicles last quarter than Wall Street expected, though it stood by its 2024 output target of about 57,000 units. Still, even cheery results like these and the unchanged full-year outlook failed to mollify investor concerns about the sector. Rivian shares fell 58 cents to $10.51 in New York.