Technology
Tuesday, April 2nd, 2024 3:44 pm EDT
Key Points
- Tesla’s first-quarter vehicle production and deliveries report for 2024 revealed an 8.5% decline in deliveries compared to the same period last year and a 20% decrease from the fourth quarter, marking the first year-over-year drop since Q2 2020.
- Total deliveries for Q1 2024 were reported at 386,810, with total production at 433,371 vehicles. Vehicle production experienced a 1.7% year-over-year decline and a 12.5% sequential decrease.
- Challenges faced by Tesla during the quarter included production disruptions at its factories due to various factors such as early phase production ramp of the updated Model 3, external disruptions like Houthi militia attacks affecting component supply, competition from domestic EV makers in China, and mixed reviews for the Cybertruck model. Despite efforts like discounts and incentives, Tesla’s shares dropped by 29% in the first quarter, and prospective U.S. customers dwindled, partly attributed to CEO Elon Musk’s public persona.
Tesla’s first-quarter vehicle production and deliveries report for 2024 revealed a notable 8.5% decrease in deliveries compared to the same period last year and a significant 20% decline from the fourth quarter. This marks the first year-over-year drop for Tesla since the second quarter of 2020, primarily attributed to disruptions caused by the global pandemic. Despite a modest 1.7% decline in vehicle production year over year, Tesla experienced a sharper sequential decrease in deliveries. The company’s shares plummeted around 7% in premarket trading and continued to fall by 5% later in the morning. While Tesla does not disclose sales by model, it reported production and delivery figures for its Model 3/Y cars and other models. Analysts had anticipated higher delivery figures, with estimates ranging from 414,000 to 511,000 deliveries for the first quarter. Challenges faced by Tesla during the quarter included production disruptions at its factories in California and Germany due to external factors like Houthi militia attacks and environmental activism. In China, increased competition from domestic EV manufacturers and mixed reviews for Tesla’s newest model, the Cybertruck, contributed to sluggish sales. Tesla’s CEO, Elon Musk, implemented measures like mandating staff to demonstrate the company’s premium driver assistance system to boost sales. However, prospective customers in the U.S. reportedly dwindled in number, partially attributed to concerns over Musk’s public persona. Despite these challenges, Musk remains confident in Tesla’s resilience, though the company’s shares saw a significant decline of 29% in the first quarter. Tesla has scheduled an earnings call for April 23 to discuss its quarterly results.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/02/tesla-tsla-q1-2024-vehicle-delivery-and-production-numbers.html
