After first quarter results, Tesla has shown a decline in the number of vehicles, in part owing to greater competition and a slowing of demand for EVs. Although the company itself ascribed the fall as being due to “the early phase of the production ramp of the updated Model 3 … and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.”

Whatever the reasons, it looks like Tesla is about to embark on some serious staff reduction, laying off about a tenth of its workforce.

Tesla's deliveries declined by over 8 per cent in the first quarter, wit the company supplying 386,810 vehicles, compared to last year where the company produced 433,371 vehicles. Of these 386,810, the vast majority (369,783) were Model 3/Y.

Tesla has recently reduced prices on some models, sometimes by several tens of thousands of dollars, which have reduced margins too as the company attempts to compete. However, the company has also promised new products this year, and it could be that the product cycle is just at its low point as older models are discounted before new ones arrive. We shall see.

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