Tesla shares experienced a decline on Tuesday following the company's report of a drop in vehicle deliveries in the first quarter, marking the first annual decline since 2020 due to disruptions caused by the global pandemic. Key numbers from the report include total deliveries for Q1 2024 at 386,810 vehicles and total production at 433,371. While vehicle production saw a minor decrease of around 1.7% from the previous year and 12.5% sequentially, deliveries experienced a more significant drop of 8.5% annually.

Tesla's quarterly deliveries fell below analysts' expectations, with estimates ranging from 414,000 to 469,000 deliveries. Challenges faced by Tesla during this period included disruptions in component supply due to militia attacks on shippers in the Red Sea and production pauses at its German factory following environmental activism. Additionally, in China, Tesla encountered stiff competition from domestic EV makers and reduced production of its Model 3 and Model Y at its Shanghai plant. Tesla shares closed down about 5% on Tuesday at $166.63 per share, marking the third-steepest quarterly decline since the company's IPO in 2010. The company is scheduled to discuss its quarterly results in an earnings call on April 23.