Technology
Wednesday, October 2nd, 2024 4:18 pm EDT
Key Points
- Production and Deliveries: Tesla reported 469,796 vehicle productions and 462,890 deliveries for Q3 2024, slightly missing analysts’ expectations of 463,310 deliveries. This marks an increase from the previous year’s deliveries of 435,059 but indicates a slowdown in growth.
- Competitive Pressures: Tesla faces intensified competition, particularly in China, from companies like BYD and Geely, and in the U.S. from emerging EV makers like Rivian, as well as legacy automakers like GM and Ford, which are also ramping up their electric vehicle sales.
- Stock Performance and Brand Challenges: Following the report, Tesla’s stock fell 3.7%, despite a 32% increase in the third quarter, which helped it recover earlier losses. The brand is under pressure partly due to CEO Elon Musk’s controversial public statements, although Tesla remains the leading seller of battery-electric vehicles in the U.S.
Tesla released its third-quarter vehicle production and delivery report, which saw the company produce 469,796 vehicles and deliver 462,890 in Q3 2024. While this is an increase from the 435,059 deliveries and 430,488 produced in the same period last year, Tesla slightly missed analysts’ expectations of 463,310 deliveries. Tesla faces growing competition, especially in China, from companies like BYD, Geely, and newer players like Li Auto and Nio, along with increasing competition in the U.S. from Rivian and legacy automakers such as Ford and General Motors (GM). GM, for example, saw a significant 60% rise in EV sales for the third quarter but remains far behind Tesla, with only 32,100 units sold compared to Tesla’s dominance in the U.S. electric vehicle (EV) market.
Tesla’s third-quarter report highlighted the company’s challenges, including its softer growth outlook for deliveries in 2024 compared to previous years. Despite introducing the new Cybertruck, Tesla’s delivery growth rate is expected to slow. The company also deployed 6.9 GWh of energy storage products in Q3, continuing its expansion beyond vehicle production. Tesla’s stock, which gained 32% in Q3 2024, has erased earlier losses for the year and is now up about 4% in 2024. However, this remains below the Nasdaq, which has gained 19%.
CEO Elon Musk’s controversial public behavior and political endorsements, including support for former President Donald Trump and comments criticized by the White House as “racist hate,” have impacted Tesla’s brand image in the U.S. Nonetheless, Tesla continues to lead the U.S. EV market, outpacing competitors like Hyundai. Looking ahead, Tesla investors will closely monitor the company’s profit margins in the upcoming third-quarter earnings report, especially given the various financing incentives Tesla has rolled out to maintain its sales momentum in both the U.S. and China.
In addition to the earnings report, Tesla has a marketing event scheduled for October 10, where it is expected to showcase the design of a dedicated robotaxi. While Musk has long promised self-driving cars, Tesla has yet to deliver on this vision, even as competitors like Waymo and Pony.ai have launched commercial robotaxi services. Investors and industry watchers will be eager to see how Tesla’s autonomous vehicle ambitions unfold amid these rising competitive pressures.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/10/02/tesla-tsla-q3-2024-vehicle-delivery-and-production-numbers.html
