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Elon Musk is still intrinsic to Tesla’s future

Shares drop after car sales slip in first quarter

For years, Elon Musk has been the not-so-secret weapon behind Tesla’s success. His reputation as an indefatigable tech maverick helped to make emission-free vehicles desirable, first for the Silicon Valley crowd then the world. Now, his caustic online presence is considered a liability. But he cannot shoulder all the blame for the carmaker’s problems.

Tesla on Tuesday announced vehicle deliveries in the first quarter had fallen 8.5 per cent on last year, the first year-on-year drop since early 2020. The shares dropped 5 per cent. They are down nearly 60 per cent from its late-2021 high point.

Tesla blames supply problems, pointing to conflict in the Middle East and an arson attack at its Berlin factory. But a gap between production and delivery numbers suggests issues with demand.

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