Tesla recently released its first-quarter vehicle production and deliveries report for 2024, revealing some disappointing figures. In Q1 2024, the total deliveries amounted to 386,810 vehicles, while total production reached 433,371 units. These numbers represent a decline from the same period last year, where the company reported 422,875 deliveries and production of 440,808 vehicles. In the fourth quarter of 2023, Tesla had fared better with 484,507 deliveries and production of 494,989 vehicles.
The first quarter of 2024 was marked by several challenges for Tesla. The company experienced disruptions in its supply chain due to Houthi militia attacks on shippers in the Red Sea, which affected its component supply and led to a temporary suspension of production at its German factory near Berlin. Additionally, environmental activists set fire to infrastructure near the same factory in March, causing further delays in production. In China, Tesla encountered fierce competition from domestic EV makers like BYD and Xiaomi, leading to sluggish sales numbers for its China-made cars in the early months of the year.
Despite efforts to boost sales through discounts and incentives, Tesla faced mixed reviews for its newest model, the Cybertruck, which was introduced in limited quantities in December. The introduction of the company’s premium driver assistance system, marketed as Full-Self Driving, also faced challenges in driving sales volume. Elon Musk’s mandate for all sales and service staff to install and demo the system for North American customers did not seem to significantly impact sales. Moreover, shares of Tesla experienced a significant decline of 29% in the first quarter, marking one of the largest drops since the company’s IPO in 2010.
Analysts had varying expectations for Tesla’s performance in the first quarter of 2024. A mean of 11 estimates compiled by FactSet projected deliveries of around 457,000 vehicles, with estimates ranging from 414,000 to 511,000. Independent researcher Troy Teslike had anticipated deliveries around 409,000. Tesla’s head of investor relations shared a company-compiled consensus with select investors, indicating a mean of 443,027 deliveries and a median of 431,125. However, the actual figures fell short of these estimates, disappointing both analysts and investors.
Tesla’s performance in the first quarter of 2024 fell below expectations, with challenges in production, supply chain disruptions, and market competition impacting the company’s results. The decline in sales and production figures, along with the decreased effectiveness of sales strategies, signal a need for Tesla to address these issues and reevaluate its approach to market challenges in the upcoming quarters.