Tesla’s first quarter EV sales fail to meet analysts' expectations, stocks fall

Tesla's reported first-quarter sales Tuesday of its electric vehicles fell well below analysts' expectations, result in stock prices declining by as much as 5.5% in early trading.

The Austin, Texas, company said it delivered 386,810 vehicles worldwide from January through March, almost 9% below the 423,000 it sold in the same quarter of last year, according to the Associated Press. 

The drop in sales was Tesla's first since 2020.

Wall Street cited more competition in the EV marketplace and a drop in demand. 

Telsa attributed the sales decline in part to early challenges in the production of its Model 3 at its Fremont, California, plant and "factory shutdowns." 

Industry analysts expected at least 457,000 vehicles to be delivered from Tesla for the first quarter. 

Production time on Tesla vehicles was also lost during the last three months due to a suspected arson attack that knocked out power in its German factory.