WionDrive News Desk 
Tesla Inc. had a sluggish start to the second quarter in Europe, where CEO Elon Musk had anticipated a much stronger performance compared to the first few months of the year.
According to the European Automobile Manufacturers’ Association, Tesla registered only 13,951 vehicles in April, a 2.3 per cent decrease from the same period last year and the company’s lowest tally since January 2023. Tesla’s result stood out as an exception in an otherwise encouraging month for battery-electric vehicle sales, which rose 14% across the industry.
Tesla faced a similar downturn in shipments from its Shanghai factory for April, contrasting with the strong growth observed in China’s broader plug-in car industry. On April 23, Musk informed investors that the company expected to recover from several issues that affected production in the first quarter, including disruptions in Red Sea shipping and the suspected arson of power lines near its German sport utility vehicle plant.
“We think Q2 will be a lot better,” Musk said during Tesla’s first-quarter earnings call.
Tesla Inc’s shares declined by as much as 1.8 per cent in pre-market trading on Wednesday, following the company’s underwhelming vehicle registration numbers in Europe for April.
Meanwhile, Tesla has commenced construction of a $200 million factory in Shanghai’s Lingang pilot free trade zone to manufacture its Megapack energy storage batteries. This facility will be Tesla’s first battery plant outside the United States.
Tesla established an electric vehicle (EV) plant in Shanghai in 2019, which assembles cars for the Chinese, European, and other overseas markets. While Tesla is the No. 2 seller in China’s booming EV market, it trails behind the Chinese automaker BYD, the current market leader.
According to Tesla’s website, each Megapack can store more than 3.9 megawatt-hours of energy, enough to power an average of 3,600 homes for one hour. These storage units are primarily designed for utility companies and commercial facilities.
Energy storage solutions like the Megapack have become increasingly important with the growth of solar and wind energy, which require storage capabilities to meet residential and commercial energy demands during periods when weather conditions are unfavourable for generation.
