(Reuters) – Tesla Inc on Sunday missed estimates for first-quarter deliveries as a bleak economic outlook and rising competition weighed on the electric automaker’s sales.
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.
Tesla has attempted 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 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.
(This story has been corrected to delete the references to price cuts failing to lure buyers, in headline and paragraphs 1 and 4)
(Reporting by Akash Sriram and Urvi Dugar in Bengaluru; Editing by Sriraj Kalluvila, Will Dunham and Lisa Shumaker)