There is "big news" from Tesla's American factory, and Musk can't bear it!
Text: Connected Fish
As synonymous with innovation and disruption in the technology field, Musk can't bear it, and his electric car leader Tesla's sales report card for the first quarter of 2024 has been released, sales have plummeted, and he is preparing to lay off 20% of employees at the factory in the United States.
According to recent public data, Tesla's global market delivery volume was 386,800 vehicles, down 8.5% year-on-year and 20.2% month-on-month. Not only that, but Tesla's inventory is starting to surge.
This number not only refreshed Tesla's record of a new low in the past five quarters, but more importantly, it is also the first time since the third quarter of 2022 that Tesla's quarterly sales fell below 400,000 units.
At the same time, Tesla's car inventory has piled up to 46,000 units, which is undoubtedly a big embarrassment for Tesla, which has always emphasized lean production.
Tesla's performance decline, in the context of the global auto market, is thought-provoking. After all, Tesla was once the company that broke the rules of the industry and led the trend of electric vehicles.
And Musk, the CEO, who has always been known for being tough, has also begun to make difficult choices in the face of such a severe sales situation. The news of layoffs at Tesla's U.S. factory is a self-help measure offered by Musk under pressure to cope with the current predicament by cutting costs and optimizing operations.
So what are the reasons behind Tesla's plummeting sales and 20% layoffs? We believe that the main aspects are as follows:
The first factor is market competition, now the electric vehicle market competition is becoming more and more fierce, various brands emerge in an endless stream, each is competing to launch more cost-effective products, and consumers have more choices.
And with the transformation of traditional car companies to electrification, as well as the rapid rise of a number of new forces such as Weilai, Xiaopeng, Li and other Chinese new energy vehicle brands, now even Xiaomi, which is from making mobile phones, has officially entered the market, and Tesla's market share has naturally been squeezed.
The second point is that we believe that Tesla's own product iteration rhythm has also caused controversy.
In the ramp-up phase of the production capacity of new models such as the Model Y and Cybertruck, the market demand for the original main models Model 3 and Model S and X was not high, and the production capacity release of new models did not fill this gap in time, resulting in a decline in overall sales.
Third, objectively speaking, Tesla itself also has some problems. For example, Tesla has recalled many vehicles due to quality problems before, and 3.5 million vehicles were recalled in the first quarter of 2024 alone, which has affected consumer confidence to a certain extent.
In addition, Tesla's pricing has also been questioned by the outside world as being too high, although the brand premium does exist, but if the price is maintained high, consumers may choose other brands that are more cost-effective.
Therefore, Tesla's sales plummeting in the first quarter is not accidental, it is the result of a combination of internal and external factors. Musk's layoff at this time may be his sober understanding and response to the current predicament, aiming to regain his dominant position in the market by slimming down and adjusting his strategy.
However, from the perspective of a bystander, Tesla's future road will be bumpy, after all, the iteration of China's new energy products is very fast, Tesla not only has to face increasingly fierce market competition, but also continue to consolidate and improve its product quality, service capabilities and brand reputation, in order to continue to maintain a leading edge on the track of electric vehicles.
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