Tesla's EV sales are showing signs of slowdown as it tries to compete in an increasingly tighter market.
In its first quarter report on Tuesday, the electric automaker revealed a decline in EV units sold from the same period last year.
Tesla said it sold 387,00 cars so far this year, an 8.5% drop from the 423,000 sales from the first quarter in 2023.
The sales drop was even after Tesla lowered the prices of its EVs by up to $20,000 amid complaints from its investors.
Tesla Blames Production Slowdowns for Lower Sales
The company cited delivery delays due to factory shutdowns and an arson attack at its Gigafactory in Berlin as factors for the lower sales.
Its flagship Cybertruck also did not provide much profit to the company as most of cars outside of the first batch of release is still stuck in production limbo.
The slowdown in Tesla's market has previously been noted in lower sales of EVs in several states in the US amid steep competition.
More EV Manufacturers Join US Market Fray
With the current administration pushing to transition the whole country's highways to be carbon-free by 2026, more car manufacturers have started expanding EV operations in the US.
Amid ramp-ups in production, lawmakers and car dealers expressed concern about the government playing catch-up in making highways sustainable for electric vehicles.
As of writing, the government has been facing pushback to increase EV chargers in major highways over concerns of environmental impact and logistics problems.
EV battery production has also been relatively slow as companies are dissuaded by regulatory requirements needed to operate in the US. Many automakers still import lithium batteries for their EVs, marking the price of the cars much higher.
This is not to include delays in the chip factories, which are needed for EV car systems, despite billions of dollars invested.
As of writing, the White House has eased the requirements to shift towards green energy for car dealers while the government and automakers find a way to boost its market.
Recent surveys indicate Americans remain indifferent towards the much-pricier EVs, with less than 40% planning to buy one over traditional gas-powered cars.
