Tesla On Tuesday, the company reported a decline in first-quarter vehicle deliveries, its first annual decline since the global pandemic disrupted production in 2020.
Here are the key numbers:
Total sales in Q1 2024: 386,810
Total production in Q1 2024: 433,371
Tesla’s car production fell by about 1.7% annually and 12.5% quarterly, but the increase was far less than the 8.5% decline in annual vehicle deliveries.
Tesla does not break down sales by model, but reported that it produced 412,376 Model 3/Y vehicles and delivered 369,783. The production volume of other models was 20,995 units and the delivery volume was 17,027 units.
In the same period last year, the electric car maker delivered 422,875 vehicles and produced 440,808 vehicles. In the fourth quarter of 2023, Tesla delivered 484,507 vehicles and produced 494,989 vehicles.
Deliveries are the closest thing Tesla reports to sales, but it’s not clearly defined in the company’s shareholder communications.
Tesla’s deliveries for the quarter were well below even analysts’ most pessimistic expectations.
Analysts expect deliveries of about 457,000 vehicles in the period ending March 31, based on an average of 11 forecasts compiled by FactSet. Deliveries in the first quarter are expected to be as high as 511,000 units and as low as 414,000 units, with the forecast updated in March ranging from 414,000 to 469,000 units.
Independent auto industry researcher Troy Teslike, whose work is closely followed by Tesla fans, expects deliveries to be around 409,000 vehicles.
Martin Viecha, Tesla’s head of investor relations, sent the company’s consensus, compiled from estimates from 30 analysts, to select investors over the weekend. Analysts expect deliveries for the quarter to average 443,027 aircraft and have a median of 431,125, according to a consensus seen by CNBC.
Tesla faced many challenges in the first quarter.
Houthi militia attacks on shippers in the Red Sea have disrupted Tesla’s parts supply and temporarily halted production at its German factory outside Berlin in January. In March, environmentalists set fire to infrastructure near the factory, causing Tesla to lose enough operating power and halting production again.
Tesla said in a statement statement “The sales decline is due in part to the early stages of production of the updated Model 3 at our Fremont (California) plant and the closure of the plant.”
In China, Tesla faces fierce competition from domestic electric car makers, including newcomers such as BYD and mobile phone maker Xiaomi. After sluggish sales of China-made cars in January and February, Tesla reduced Model 3 and Model Y production at its Shanghai factory and cut workers’ hours from 6.5 days a week to five.
In the United States, reviews have been mixed for Tesla’s latest model, an angular pickup called the Cybertruck, which the electric car maker only began selling in small quantities in December.
For Tesla, a series of discounts and incentives appear to be less effective than in the past in driving sales.
In the final days of the first quarter, Tesla CEO Elon Musk asked all sales and service staff to install and demonstrate the latest version of the company’s advanced driver-assistance systems for North American customers before delivering cars. The system is promoted as full self-driving, but it does not enable Tesla vehicles to drive themselves. They need someone to drive them, ready to turn or brake at a moment’s notice.
Tesla’s potential customer base in the United States continued to shrink in the first quarter of 2024, according to one company. Reuters reports Citing Caliber survey data. The report attributed the decline in part to Musk’s personal image.
Musk continues to bet Tesla customers and shareholders will stick with the brand and company regardless of his political views inflammatory remarks Beyond the X he has.
Tesla’s stock price fell 29% in the first quarter, the largest decline since the end of 2022 and the company’s third largest quarterly decline since its IPO in 2010.
The company plans to hold an earnings call on April 23 to discuss quarterly results.
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