Tesla’s first-quarter report for 2024 revealed a significant drop in both deliveries and production compared to the year-ago quarter and the previous quarter. Total deliveries in Q1 2024 amounted to 386,810, down 8.5% from the same period last year and a staggering 20% decline from the fourth quarter. On the production side, Tesla manufactured a total of 433,371 vehicles, marking a 1.7% decrease from the previous year and a 12.5% sequential decline.
Tesla did not provide a breakdown of sales by model in its report, but it disclosed that it produced 412,376 Model 3/Y cars and delivered 369,783 of them. Additionally, the company produced 20,995 units of other models and delivered 17,027. These figures represent a reduction in deliveries and production compared to Q1 2023 and Q4 2023. Despite these numbers, Tesla’s deliveries in Q1 2024 fell below the lowest analyst estimate. Analysts had projected deliveries to be around 457,000 for the quarter, with estimates ranging from 414,000 to 511,000. Even independent auto industry researcher Troy Teslike’s estimate of around 409,000 deliveries was higher than the actual figure reported by Tesla.
Tesla encountered several difficulties during the first quarter of 2024 that contributed to the decline in volumes. The company attributed part of the decrease in production to the initial phase of ramping up the updated Model 3 at its Fremont factory. Furthermore, factory shutdowns occurred due to disruptions in shipping caused by the Red Sea conflict and an arson attack at Gigafactory Berlin. The conflict in the Red Sea led to interruptions in Tesla’s component supply chain, while the arson attack near the Berlin factory disrupted production in March. In addition, Tesla faced heightened competition in China from domestic electric vehicle manufacturers like BYD and Xiaomi, which impacted sales of its China-made cars.
Despite efforts to boost sales through discounts and incentives, Tesla experienced a drop in demand for its vehicles during the quarter. The introduction of the Cybertruck, the company’s newest model, received mixed reviews, and sales volumes were not as high as anticipated. As a result, Tesla’s shares plummeted by 29% in the first quarter, marking the company’s largest decline since 2022. In response to these challenges, Tesla CEO Elon Musk mandated that all sales and service staff demonstrate the company’s latest premium driver assistance system to customers before vehicle handover. Looking ahead, Tesla scheduled an earnings call for April 23 to address its quarterly performance and potentially outline strategies for overcoming the obstacles faced in Q1 2024.
Tesla’s first-quarter report for 2024 highlighted a series of challenges and setbacks that impacted the company’s deliveries, production, and market performance. As Tesla navigates through these obstacles, it will be crucial for the company to implement effective strategies to regain momentum and enhance its competitive position in the evolving electric vehicle market.
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