© Reuters. FILE PHOTO: Visitors check a Tesla Model 3 car next to a Model Y displayed at a showroom of the U.S. electric vehicle (EV) maker in Beijing, China February 4, 2023. REUTERS/Florence Lo/File Photo
(Reuters) – Tesla (NASDAQ:) Inc on Sunday missed estimates for first-quarter deliveries as a bleak economic outlook and rising competition outweighed the electric automaker’s efforts to prop up demand with price cuts.
Tesla delivered 422,875 vehicles compared with analyst expectations for 430,008 vehicles, according to Refinitiv data.
Investors have been watching CEO Elon Musk’s gamble that cutting prices would stimulate sales, making up for the profit hit from eroding margins. Shares have soared more than 68% this year on hopes that Tesla would win a price war it started, although the stock remains more than 50% down from its peak in November 2021.
The issues have also dampened Tesla’s efforts to bolster demand with price cuts at a time when orders are under pressure from the turbulent economy and rising competition from startups such as Lucid Group and legacy players including Ford Motor (NYSE:) Co.
Tesla has been fending off competition in China with its price cuts in the world’s largest auto market, while its Model Y compact SUV was among the top performers.
