Tesla has just released its first-quarter vehicle production and deliveries report for 2024. The key numbers from the report are as follows:
– Total deliveries Q1 2024: 386,810
– Total production Q1 2024: 433,371
– Shares dropped 7% in premarket trading
Although Tesla does not provide a detailed breakdown of sales by model, the report stated that it produced 412,376 Model 3/Y cars and delivered 369,783 of them. Additionally, Tesla produced 20,995 of its other models and delivered 17,027. In comparison to the same period last year, the electric automaker reported 422,875 deliveries and production of 440,808 vehicles. In the fourth quarter of 2023, Tesla reported 484,507 deliveries and production of 494,989 vehicles.
Analysts had varying expectations for Tesla's deliveries in the first quarter of 2024. A mean of 11 estimates compiled by FactSet suggested that analysts were expecting deliveries of around 457,000 for the period ending March 31, with estimates ranging from a high of 511,000 to a low of 414,000. Independent auto industry researcher Troy Teslike had expected deliveries to come in around 409,000. Tesla's own consensus based on 30 analysts' estimates indicated that analysts were expecting a mean of 443,027 deliveries and a median of 431,125 deliveries for the quarter.
Tesla encountered several challenges in the first quarter of 2024. Houthi militia attacks on shippers in the Red Sea disrupted Tesla's component supply chain, leading to a temporary suspension of production at its German factory outside Berlin in January. Furthermore, environmental activists set fire to infrastructure near the same factory in March, causing another pause in production. In China, Tesla faced fierce competition from domestic EV makers such as BYD and Xiaomi, resulting in reduced production of its Model 3 and Model Y at its Shanghai plant. In the U.S., the reception to Tesla's newest model, the Cybertruck, was mixed, and discounts and incentives seemed less effective in boosting sales volume compared to previous quarters.
The challenges faced by Tesla in the first quarter had a significant impact on its stock performance. Shares of Tesla dropped 29% in the first quarter, marking the biggest decline since the end of 2022 and the third-steepest quarterly drop since the company's IPO in 2010. Despite the setbacks, Tesla remains optimistic about its future prospects and is working to address the issues that affected its performance in the first quarter.
Tesla's first-quarter vehicle production and deliveries report for 2024 highlights both the company's achievements and the challenges it faced during the period. The fluctuating analyst expectations, production disruptions, and market competition have all contributed to Tesla's performance in the first quarter. As Tesla navigates these challenges and works towards its long-term goals, investors and analysts will be closely watching the company's next moves and strategic decisions.