Tesla, the electric vehicle company led by Elon Musk, has experienced a significant decline in deliveries in the first quarter of this year. This decline can be attributed to various challenges faced by the company, including a fire at its European factory, global shipping disruptions, and other issues. Tesla delivered just under 387,000 electric cars to customers during this period, which is the lowest quarterly figure in over a year. This represents a decrease of more than 8% compared to the previous year and is far below analysts’ expectations.

As a result of this disappointing news, Tesla’s shares fell more than 4%. Analyst Dan Ives from Wedbush Securities described the situation as an “unmitigated disaster” that is difficult to explain. Tesla’s shares have already been declining due to challenges such as higher interest rates making its cars less affordable and increased competition in the electric vehicle market. In response, the company has repeatedly reduced prices. However, demand in key markets like China has weakened, with competitors like BYD gaining market share.

Tesla’s problems worsened in the first quarter of this year due to supply disruptions caused by Houthi attacks in the Red Sea. These disruptions temporarily shut down the company’s factory in Germany, which was later targeted in an alleged arson attack. The figures from this quarter indicate that it has been a difficult period for Tesla, putting pressure on Elon Musk. The company’s production in the first quarter decreased by about 1.6% compared to the previous year, while deliveries were significantly affected, dropping more than 8%.

This decline in deliveries is the first annual fall for any quarter since 2020 and represents a 20% decrease compared to the previous quarter. It is worth noting that other car companies in the industry have also scaled back their electric car ambitions due to weaker-than-expected demand. However, most experts still anticipate significant growth in electric vehicle sales this year. Tesla has also faced specific problems, including scrutiny of its driverless car software and investigations into safety concerns. Additionally, some investors have expressed concerns about the company’s product lineup and Elon Musk’s focus on other ventures, which have caused controversy and affected the Tesla brand.

Original news source: Tesla ‘disaster’ with fewest deliveries since 2022 (BBC)

🎧 Listen:

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📖 Vocabulary:

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: In pairs or small groups, students will read the article and summarize the main points in their own words. They can then share their summaries with the class.

– Opinion Poll
Instructions: Students will create a poll with questions related to the article, such as “Do you think Tesla will be able to recover from this decline in deliveries?” or “What factors do you think contributed to Tesla’s decrease in sales?” They will then survey their classmates and present the results, sparking a discussion.

– Headline Creation
Instructions: In pairs or small groups, students will create attention-grabbing headlines for the article. They can focus on different aspects of the news, such as the decline in deliveries, the challenges faced by Tesla, or the impact on Elon Musk and the company’s future.

– Vocabulary Pictionary
Instructions: Students will select 5-10 key vocabulary words from the article and draw pictures to represent them. They will then take turns showing their drawings to the class, who will try to guess the corresponding words.

– Pros and Cons
Instructions: Students will brainstorm the pros and cons of owning an electric vehicle, using the information from the article as a starting point. They will then have a debate, with some students arguing for the pros and others for the cons, presenting their arguments to the class.

🤔 Comprehension Questions:

1. What are some of the challenges that Tesla has faced in the first quarter of this year?
2. How many electric cars did Tesla deliver to customers during this period?
3. How does the number of deliveries in the first quarter of this year compare to the previous year?
4. What was the impact of the decline in deliveries on Tesla’s shares?
5. Why have Tesla’s shares been declining even before this disappointing news?
6. What were the supply disruptions that affected Tesla’s factory in Germany?
7. How did the decline in deliveries in the first quarter of this year compare to the previous quarter?
8. What are some specific problems that Tesla has faced, apart from the decline in deliveries?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

Tesla, the electric vehicle company led by Elon Musk, has experienced a significant decline in deliveries in the first quarter of this year. This decline can be attributed to (1)______ challenges faced by the company, including a fire at its (2)______ factory, global shipping disruptions, and other issues. Tesla delivered just under 387,000 electric cars to customers during this period, which is the lowest (3)______ figure in over a year. This represents a decrease of more than 8% (4)______ to the previous year and is far below analysts’ expectations.

As a result of this disappointing news, Tesla’s shares fell more than 4%. Analyst Dan Ives from Wedbush Securities described the situation as an “unmitigated disaster” that is difficult to explain. Tesla’s shares have already been declining due to challenges such as higher interest rates making its cars less (5)______ and (6)______ competition in the electric vehicle (7)______. In response, the company has repeatedly reduced prices. However, demand in key markets like China has weakened, with competitors like BYD gaining market share.

Tesla’s (8)______ worsened in the first quarter of this year due to supply disruptions caused by Houthi attacks in the Red Sea. These disruptions temporarily shut down the company’s factory in Germany, which was later (9)______ in an alleged arson attack. The figures from this (10)______ indicate that it has been a difficult period for Tesla, putting pressure on Elon Musk. The company’s production in the first quarter decreased by about 1.6% compared to the previous year, while (11)______ were significantly affected, dropping more than 8%.

This decline in deliveries is the first (12)______ fall for any quarter since 2020 and represents a 20% decrease compared to the previous quarter. It is worth noting that other car companies in the industry have also scaled back their electric car ambitions due to weaker-than-expected demand. However, most experts still anticipate significant growth in electric (13)______ sales this year. Tesla has also faced specific problems, including scrutiny of its (14)______ car software and investigations into safety concerns. Additionally, some investors have expressed concerns about the company’s product lineup and Elon Musk’s focus on other ventures, which have caused (15)______ and (16)______ the Tesla brand.
Go to answers ⇩

💬 Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What do you think are the main reasons behind Tesla’s decline in deliveries?
2. How do you think the fire at the European factory and global shipping disruptions affected Tesla’s deliveries?
3. Do you think Tesla’s decline in deliveries is a temporary setback or a long-term problem? Why or why not?
4. How would you feel if you were an investor in Tesla and saw the decline in deliveries?
5. What do you think Tesla can do to recover from this decline in deliveries?
6. Do you think the decline in deliveries is solely due to external factors, or are there internal issues within Tesla that contributed to it?
7. How do you think the decline in deliveries will impact Tesla’s reputation and brand image?
8. What do you think are the challenges that Tesla faces in the electric vehicle market?
9. Do you think Tesla’s reduced prices will help regain market share? Why or why not?
10. How do you think increased competition in the electric vehicle market has affected Tesla’s sales?
11. What is your opinion on Elon Musk’s focus on other ventures? Do you think it has negatively impacted Tesla?
12. How do you think the scrutiny of Tesla’s driverless car software and safety concerns have affected consumer trust in the brand?
13. Do you think Tesla’s decline in deliveries is indicative of a larger trend in the electric vehicle industry? Why or why not?
14. What are some potential solutions that Tesla can explore to overcome the challenges it is facing?
15. How do you think Tesla can regain its market share in key markets like China?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. decline
2. attributed
3. disruptions
4. analysts
5. unmitigated
6. competition
7. repeatedly
8. weakened
9. arson
10. pressure
11. decreased
12. ambitions
13. scrutiny
14. controversy
15. brand

Meanings:
(A) Considered to be caused by or assigned to
(B) Experts who analyze and evaluate data or events
(C) Desires or goals for achievement or advancement
(D) Rivalry among businesses or individuals for superiority or a share of the market
(E) The criminal act of deliberately setting fire to property
(F) The image or identity that a product or company has among the public
(G) Absolute or complete, without any mitigation or reduction
(H) A prolonged public disagreement or heated discussion
(I) The feeling of being under a heavy burden or stress
(J) Close examination or observation
(K) Interruptions or disturbances that prevent normal operations
(L) Made less strong or intense
(M) Done several times in a repetitive manner
(N) Became less in amount or intensity
(O) A decrease or reduction in number or intensity
Go to answers ⇩

🔡 Multiple Choice Questions:

1. What is the main reason for Tesla’s decline in deliveries in the first quarter?
(a) Various challenges faced by the company
(b) Increased competition in the electric vehicle market
(c) Higher interest rates
(d) Weaker-than-expected demand

2. How much did Tesla’s deliveries decrease compared to the previous year?
(a) More than 8%
(b) More than 4%
(c) Less than 1%
(d) More than 20%

3. What impact did the decline in deliveries have on Tesla’s shares?
(a) They increased by more than 4%
(b) They remained unchanged
(c) They fell less than 4%
(d) They fell more than 4%

4. What is the reason for the decline in demand in key markets like China?
(a) Higher interest rates
(b) Increased competition from BYD
(c) Weaker-than-expected demand for electric cars
(d) Scrutiny of Tesla’s driverless car software

5. What caused supply disruptions for Tesla in the first quarter?
(a) Increased competition in the electric vehicle market
(b) Higher interest rates
(c) Investigations into safety concerns
(d) Houthi attacks in the Red Sea

6. How did Tesla’s production in the first quarter compare to the previous year?
(a) It increased by about 1.6%
(b) It remained unchanged
(c) It decreased by about 1.6%
(d) It decreased by more than 20%

7. What is the first annual fall in deliveries for any quarter since?
(a) 2021
(b) 2020
(c) 2019
(d) 2018

8. What concerns have some investors expressed about Tesla?
(a) Scrutiny of its driverless car software
(b) Investigations into safety concerns
(c) Elon Musk’s focus on other ventures
(d) Increased competition in the electric vehicle market

Go to answers ⇩

🕵️ True or False Questions:

1. Tesla delivered over 387,000 electric cars to customers during this period, which is the highest quarterly figure in over a year.
2. This represents an increase of more than 8% compared to the previous year and is far above analysts’ expectations.
3. Tesla’s deliveries in the first quarter of this year have experienced a significant decline.
4. The decline in deliveries can be attributed to various challenges faced by the company, including a fire at its European factory and global shipping disruptions.
5. This decline in deliveries is the first annual fall for any quarter since 2020 and represents a 20% decrease compared to the previous quarter.
6. Tesla’s problems in the first quarter were worsened by supply disruptions caused by Houthi attacks in the Red Sea.
7. Tesla’s shares rose more than 4% in response to the encouraging news.
8. Tesla’s shares have been rising due to positive factors such as lower interest rates and decreased competition in the electric vehicle market.
Go to answers ⇩

📝 Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. What are some of the challenges that Tesla has faced in the first quarter of this year?
2. How has Tesla’s decline in deliveries affected its stock prices?
3. What factors have contributed to the decline in demand for Tesla’s cars in key markets like China?
4. How have supply disruptions impacted Tesla’s production and deliveries?
5. What are some specific problems and concerns that Tesla has faced recently?

✅ Answers

🤔✅ Comprehension Question Answers:

1. Some of the challenges that Tesla has faced in the first quarter of this year include a fire at its European factory, global shipping disruptions, and other issues.
2. Tesla delivered just under 387,000 electric cars to customers during this period.
3. The number of deliveries in the first quarter of this year decreased by more than 8% compared to the previous year.
4. The decline in deliveries caused Tesla’s shares to fall more than 4%.
5. Tesla’s shares have been declining due to challenges such as higher interest rates making its cars less affordable and increased competition in the electric vehicle market.
6. The supply disruptions that affected Tesla’s factory in Germany were caused by Houthi attacks in the Red Sea, which temporarily shut down the factory and later resulted in an alleged arson attack.
7. The decline in deliveries in the first quarter of this year represented a 20% decrease compared to the previous quarter.
8. Some specific problems that Tesla has faced, apart from the decline in deliveries, include scrutiny of its driverless car software, investigations into safety concerns, concerns about the company’s product lineup, and Elon Musk’s focus on other ventures.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) various
(2) European
(3) quarterly
(4) compared
(5) affordable
(6) increased
(7) market
(8) problems
(9) targeted
(10) quarter
(11) deliveries
(12) annual
(13) vehicle
(14) driverless
(15) controversy
(16) affected
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. decline
Answer: (O) A decrease or reduction in number or intensity

2. attributed
Answer: (A) Considered to be caused by or assigned to

3. disruptions
Answer: (K) Interruptions or disturbances that prevent normal operations

4. analysts
Answer: (B) Experts who analyze and evaluate data or events

5. unmitigated
Answer: (G) Absolute or complete, without any mitigation or reduction

6. competition
Answer: (D) Rivalry among businesses or individuals for superiority or a share of the market

7. repeatedly
Answer: (M) Done several times in a repetitive manner

8. weakened
Answer: (L) Made less strong or intense

9. arson
Answer: (E) The criminal act of deliberately setting fire to property

10. pressure
Answer: (I) The feeling of being under a heavy burden or stress

11. decreased
Answer: (N) Became less in amount or intensity

12. ambitions
Answer: (C) Desires or goals for achievement or advancement

13. scrutiny
Answer: (J) Close examination or observation

14. controversy
Answer: (H) A prolonged public disagreement or heated discussion

15. brand
Answer: (F) The image or identity that a product or company has among the public
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. What is the main reason for Tesla’s decline in deliveries in the first quarter?
Answer: (a) Various challenges faced by the company

2. How much did Tesla’s deliveries decrease compared to the previous year?
Answer: (a) More than 8%

3. What impact did the decline in deliveries have on Tesla’s shares?
Answer: (d) They fell more than 4%

4. What is the reason for the decline in demand in key markets like China?
Answer: (b) Increased competition from BYD

5. What caused supply disruptions for Tesla in the first quarter?
Answer: (d) Houthi attacks in the Red Sea

6. How did Tesla’s production in the first quarter compare to the previous year?
Answer: (c) It decreased by about 1.6%

7. What is the first annual fall in deliveries for any quarter since?
Answer: (b) 2020

8. What concerns have some investors expressed about Tesla?
Answer: (c) Elon Musk’s focus on other ventures
Go back to questions ⇧

🕵️✅ True or False Answers:

1. Tesla delivered over 387,000 electric cars to customers during this period, which is the highest quarterly figure in over a year. (Answer: False)
2. This represents an increase of more than 8% compared to the previous year and is far above analysts’ expectations. (Answer: False)
3. Tesla’s deliveries in the first quarter of this year have experienced a significant decline. (Answer: True)
4. The decline in deliveries can be attributed to various challenges faced by the company, including a fire at its European factory and global shipping disruptions. (Answer: True)
5. This decline in deliveries is the first annual fall for any quarter since 2020 and represents a 20% decrease compared to the previous quarter. (Answer: True)
6. Tesla’s problems in the first quarter were worsened by supply disruptions caused by Houthi attacks in the Red Sea. (Answer: True)
7. Tesla’s shares rose more than 4% in response to the encouraging news. (Answer: False)
8. Tesla’s shares have been rising due to positive factors such as lower interest rates and decreased competition in the electric vehicle market. (Answer: False)
Go back to questions ⇧