Tesla experienced a decline in vehicle deliveries during the first quarter of 2024, marking its first annual drop since the disruptions caused by the global pandemic in 2020.

Key figures show a decrease in both deliveries and production compared to the same period last year.

Despite producing fewer vehicles, Tesla managed a smaller decline in production than in deliveries.

The electric automaker faced various challenges, including supply disruptions due to Red Sea militia attacks, environmental incidents near its German factory, and increased competition in China’s EV market.

Sales of its newest model, the Cybertruck, received mixed reviews, and promotional efforts yielded less significant results, CNBC reported.

Elon Musk’s directives, including mandating staff to demonstrate the latest driver assistance system, didn’t significantly boost sales.

Surveys indicated a shrinking interest among prospective U.S. customers, partly attributed to Musk’s controversial public image.

As a result, Tesla’s shares plummeted by 29% in the first quarter, the largest drop since 2022, leading to anticipation for discussions during the upcoming earnings call scheduled for April 23.

Written by B.C. Begley