Tesla, Inc. witnessed a significant decline in its vehicle deliveries during the first quarter of 2024, marking its first annual drop since the disruptions caused by the global pandemic in 2020. The repercussions were palpable as Tesla’s shares experienced a sharp decline on Tuesday, sending shockwaves through the market.
Here’s a breakdown of the key figures:
- Total Deliveries Q1 2024: 386,810
- Total Production Q1 2024: 433,371
While vehicle production saw a marginal decline of around 1.7% compared to the previous year and a significant sequential drop of 12.5%, the most alarming aspect was the staggering 8.5% annual decrease in deliveries for Tesla.
Although Tesla doesn’t provide a detailed breakdown of sales by model, it disclosed that it produced 412,376 Model 3/Y cars and delivered 369,783 of them. Additionally, it manufactured 20,995 of its other models, delivering 17,027 units.
Comparing these figures to the same period last year, where Tesla reported 422,875 deliveries and production of 440,808 vehicles, and to the fourth quarter of 2023, where it reported 484,507 deliveries and production of 494,989 vehicles, the decline becomes even more apparent.
Analysts’ expectations fell short by a wide margin. The mean of 11 estimates compiled by FactSet projected deliveries of approximately 457,000 vehicles for the first quarter, with estimates ranging from 414,000 to 511,000. Independent researcher Troy Teslike had even more conservative estimates, expecting deliveries to come in around 409,000.
Tesla attributed the decline to various challenges faced during the quarter. Attacks on shippers in the Red Sea disrupted component supplies, environmental activism caused temporary halts in production at its German factory, and increased competition in China from domestic EV makers added to the pressure.
Furthermore, Tesla’s newest model, the Cybertruck, received mixed reviews in the U.S., and discounts and incentives seemed less effective in driving sales volume than in previous quarters.
Despite these hurdles, CEO Elon Musk remained optimistic, continuing to push the boundaries with innovations like the company’s premium driver assistance system, marketed as Full Self-Driving.
However, Tesla’s popularity seemed to wane in the U.S., with a shrinking group of prospective customers in the first quarter, according to reports citing survey data.
The repercussions were reflected in Tesla’s stock performance, with shares plummeting by 29% in the first quarter, marking the most significant decline since the end of 2022 and the third-steepest quarterly drop since the company’s IPO in 2010. As of Tuesday afternoon, the stock was down about 4.4% to $167.55.
With the earnings call scheduled for April 23, investors and enthusiasts alike are eagerly awaiting Tesla’s strategy to navigate through these turbulent times.
In conclusion, while Tesla’s journey has been characterized by innovation and disruption, the recent dip in deliveries and stock performance underscores the challenges faced by even the most pioneering companies in the ever-evolving landscape of the automotive industry.
