Tesla deliveries drop 8.5 percent year over year in first decline since 2020

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Tesla delivered 386,810 vehicles in the first quarter of 2024, an 8.5 percent drop compared to the first quarter of 2023. Tesla produced 433,371 vehicles in Q1 2024, a year-over-year decline of 1.7 percent.

“Decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin,” Tesla announced today.

In Q1 2023, Tesla produced 440,808 cars and delivered 422,875. Tesla’s Q4 2023 numbers were 494,989 cars produced and 484,507 delivered.

The Q1 2024 numbers mark Tesla’s “first year-over-year decline in quarterly deliveries since 2020, missing Wall Street’s expectations and stoking further concern about the company’s growth prospects this year,” The Wall Street Journal wrote. Tesla’s stock price was down over 5 percent today and has fallen over 33 percent in 2024.

Tesla warned of lower growth

Tesla faces increased competition in the electric vehicle (EV) market. US sales of EVs rose 50 percent year over year in Q3 2023 and 40 percent in Q4 2023. Tesla accounted for over half of US sales in Q4.

But the Elon Musk-run company’s first-quarter struggle “is a troubling sign for the broader electric-vehicle market, where growth is slowing and automakers including Ford Motor and General Motors are recalibrating investment plans after finding consumers to be less enthusiastic about going electric than the companies had expected,” the WSJ wrote.

Tesla will announce its full Q1 2024 earnings on April 23. In January, Tesla said its vehicle growth rate may be “notably lower” in 2024. Musk said that “Tesla is currently between two major growth waves” but is “very far along” in building a “next-generation low-cost vehicle.

Of the 386,810 vehicles it delivered in Q1 2024, Tesla said that 369,783 were Model 3 or Model Y cars. Tesla reported delivering 17,027 “other models” but didn’t say how many of those were Cybertrucks. This was the first full quarter of Cybertruck sales as the company delivered the first Cybertrucks to customers in late November.

Tesla’s quarterly production and delivery reports used to include a category just for Model S and Model X cars, but that category was renamed “other models” after Cybertruck deliveries began. Tesla delivered 15,985 Model S and Model X cars in Q3 2023, the last quarter before the category was expanded.

Tesla today also said it “deployed 4,053 MWh of energy storage products in Q1, the highest quarterly deployment yet.”

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