Headwinds keep gathering for Tesla (TSLA), whose shares fell 2.6% before the bell, pointing to another retreat for the struggling stock.
The EV maker is expected to report a decline in vehicle deliveries when it posts its first quarter numbers on Wednesday. While on average Wall Street analysts anticipate a drop of 3.7%, some are predicting a slide of 12%, per Reuters.
The gloom comes after Tesla registrations in key European countries tumbled again in March, another sign of faltering sales in a key market. That slide, alongside sales pullbacks in China and the US, portend a difficult first quarter for the company, Yahoo Finance’s Pras Subramanian reports.
Tesla’s stock sank 36% in the first quarter — its worst quarterly performance in over two years — as public backlash against CEO Elon Musk’s political activities and ebbing demand for the EV maker’s aging lineup weighed on the shares.
Rising competition is playing a part too. On Wednesday, Chinese rival BYD (BYDDY, 1211.HK) posted a 39% surge in pure-EV sales in the first quarter.
Meanwhile, pushback against Tesla is building on other fronts. Sweden’s largest insurer, Folksam, said on Wednesday it has sold its entire stake in the company over concerns about its stance on workers’ rights.
