Tesla’s Stumbles: Deliveries Dive, Shares Tumble


Key Numbers at a Glance

  • Total deliveries: 386,810 (-8.5% YoY, -20% QoQ)
  • Total production: 433,371 (-1.7% YoY, -12.5% QoQ)
  • Model 3/Y production: 412,376
  • Model 3/Y deliveries: 369,783
  • Other models production: 20,995
  • Other models deliveries: 17,027

Production Stumbles and Supply Chain Woes

Tesla’s production and delivery figures paint a less-than-rosy picture for the first quarter of 2024. Vehicle production declined year-over-year and sequentially, primarily due to disruptions at Gigafactory Fremont and Giga Berlin.

The Fremont factory experienced delays in ramping up production of the updated Model 3. Meanwhile, Giga Berlin faced temporary shutdowns following an arson attack and an attack on shippers in the Red Sea.

Chinese Competition and Model Mix

Tesla’s struggles in Q1 were also fueled by increased competition in China. Domestic automakers like BYD and Xiaomi intensified pressure on Tesla’s China-made cars, forcing the company to cut production and slash worker schedules.

Sluggish Sales and Unsold Inventory

Tesla’s incentive programs proved less effective in driving sales this quarter. Despite offering discounts, the company faced sluggish demand, resulting in unsold inventory. The debut of the Cybertruck also met with mixed reviews, contributing to the sales slowdown.

Unsafe and Ready to Drive?

Tesla’s mandate to install and demonstrate its Full Self-Driving (FSD) system on all delivered vehicles raised safety concerns. While marketed as enhancing driver assistance, FSD still requires human input and cannot make Tesla cars autonomous.

Investors Lose Faith

Tesla’s share price sank by 6.5% after the production and delivery announcement. The stock has dropped by 29% in the first quarter alone, marking the third-steepest quarterly decline since its IPO in 2010.

Upcoming Earnings Call

Tesla will host an earnings call on April 23 to shed light on its quarterly results and address investor concerns. As the company navigates ongoing challenges and a rapidly evolving EV landscape, its next move remains uncertain.

Data sourced from: cnbc.com