The growth story at (NASDAQ: TSLA) is starting to look shaky. After years of ever-rising deliveries of its popular electric vehicles (EVs), the company has crashed head-first into economic reality. Demand for EVs is softening, so much so that traditional automakers are pulling back on their ambitious plans. In China, cheaper alternatives are eating Tesla's lunch.

Telsa's quarterly deliveries declined in the first quarter of 2024, the first time since the pandemic started. The company delivered 386,810 vehicles, down 20% from the fourth quarter of 2023 and 9% from the first quarter of 2023. Meanwhile, Tesla produced nearly 50,000 more vehicles than it delivered.

Tesla has also recently taken some steps to boost revenue. The company now requires employees to demonstrate, upon delivery, the company's Full Self-Driving (Supervised) system, which does not make the car fully autonomous. This system is a pricey add-on not included by default with Tesla's vehicles.

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Source Fool.com