In the first quarter of 2024, Tesla announced that it delivered 386,810 vehicles, a figure notably lower than analysts’ expectations of 449,080 deliveries. This shortfall marked Tesla’s most significant miss to date. Consequently, Tesla’s shares experienced a decline of 5.5%, reaching $165.54 by 9:33 a.m. in New York, contributing to a year-to-date decrease of approximately 33%.
Analysts had swiftly adjusted their projections for Tesla’s deliveries downward as the first quarter concluded, with some correctly predicting that the numbers would fall short of the 422,875 vehicles delivered in the previous year. Tesla attributed the volume decline to various factors, including the early production ramp of its updated Model 3, shipping diversions due to the Red Sea conflict, and an arson attack at its Berlin factory.
However, the primary concern remained consumer demand. Elevated interest rates deterred some potential buyers, and Tesla itself had cautioned investors about being “between two growth waves.” Elon Musk, Tesla’s CEO, acknowledged the seasonal impact on car purchases, particularly in winter, offering a $1,000 incentive in February. Additionally, Tesla began experimenting with advertising and intensifying efforts to educate consumers about its product lineup.
While Tesla does not provide quarterly vehicle sales breakdowns by region, historically, the US and China have represented its largest markets. The company manufactures the Model S, X, 3, and Y in Fremont, California, and produces the Model 3 and Y in Shanghai. Expansion continued with production facilities in Austin and outside Berlin, contributing to the broader range of vehicles available.
Tesla’s product line was enriched late last year with the introduction of the stainless steel-clad Cybertruck in the US. However, specific production and delivery figures for the Cybertruck were not disclosed. Despite these challenges, Tesla’s commitment to innovation and expansion remains evident as it navigates through the evolving landscape of electric vehicle manufacturing and market dynamics.