Tesla revealed preliminary production and delivery figures for the first quarter on Tuesday, and they have notably declined: falling compared to the same period last year for the first time since 2020 and the onset of the pandemic.
In the first quarter of 2024, Tesla manufactured 433,371 vehicles, while it delivered only 386,810 vehicles. Both figures are lower than the previous quarter and the same quarter last year.
The drop in deliveries is much more severe than analysts expected for the quarter, even until recently, and is particularly notable. It has decreased dramatically (around 20%) compared to the previous quarter and represents an 8.5% decline compared to the same quarter last year. The only drop that comes close was in the second quarter of 2020, when the pandemic forced Tesla to shut down production dramatically.
Tesla has also raised prices for the Model Y in recent days, which was the best-selling vehicle globally in 2023.
Between the lines, Tesla says the decrease in volumes was partly due to the production ramp of a renewed Model 3, dubbed Highland, at the company’s factory in Fremont, California. It is also due to “factory closures resulting from shipping diversions caused by the Red Sea conflict and an arson attack at the Gigafactory Berlin,” according to the company.
Tesla is also starting to ramp up production and deliveries of the Cybertruck. According to the company, deliveries of “other models,” including the Model S, Model X, Cybertruck, and Semi, totaled only 17,027 in the quarter. However, it highlighted that it is a record quarter for its energy storage products.
Buyers’ sentiment about Tesla CEO Elon Musk and what the company represents may also be having a greater impact. One such analysis published this week noted that Musk contributed to the “reputation decline” of Tesla, and Cox Automotive anticipates only 3% growth in the United States, while the rest of the electric vehicle market grows by 15%. Tesla’s share of the U.S. electric vehicle market declined in 2023 despite price cuts.
It is worth noting that even with such imbalanced growth, Tesla will remain well ahead of electric vehicle sales from any automaker for some time.
