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Tesla's Q1 Deliveries Miss Out on Expectations, Shares Drop Slightly

Tesla has announced its delivery results for the first quarter of this year. The American carmaker did not do as well as expected, and its shares sustained a slight drop.
Tesla Model X front grille 1 photo
The automaker announced in February that it would sell 16,000 Model S and Model X units combined in Q1, but the published results showed that they only reached 14,820 units.

Once the results were published and analysts started crunching the numbers, Tesla shares value suffered a slight drop, but it was not as severe for the company thanks to the fact that its stock value had risen last week after the presentation of the Model 3.

Therefore, as Automotive News notes, the value of Tesla stock had come closer to where it was before they showcased the Model 3.

Tesla has an explanation for why the Model X did not fare as expected concerning sales. The American carmaker says that “hubris in adding too much technology to the Model X in version 1” was to blame for the mishap. The term hubris refers to “a loss of contact with reality and an overestimation of one’s competence or capabilities,” according to Wikipedia.

So, Tesla blames itself for underperforming on sales of the Model X for being too proud of itself and arrogant enough to add technology that proved difficult to manufacture on a production scale.

These errors, usually associated with a lack of humility, led to delays in Model X deliveries and production. As analysts note, Tesla does score some kudos for the honesty involved in explaining why their results were under their expectations.

Other carmakers might have said that the issues were caused by suppliers, shifting market trends, financial insecurities, and other possible reasons. While some of these are usually valid excuses, especially for a difference of a little over 1,000 cars on a global scale, Tesla preferred to point a finger at itself and not play the blaming game.

 
 
 
 
 

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