Tesla, Inc. recently announced their first quarter 2024 deliveries of 386,810 vehicles. This awe-inspiring figure is a testament to the company’s overall resilience while having to overcome multiple and significant headwinds in the market. The company produced 433,371 vehicles during the same period, reflecting its ongoing efforts to meet demand despite shifting market dynamics. Tesla’s market share in BEVs in Germany has crashed down from close to 16% to a mere 4%. This decline underscores the emergence of more stringent competition and changing consumer tastes.
It certainly wasn’t an easy first quarter for Tesla, which saw a perfect storm of worker protests and a consumer boycott erupt against the electric automaker. Several of these incidents crossed over into criminal acts, raising even more questions about the safety of Tesla’s brand and long-term operations stability. The company was subsequently subjected to withering criticism of its political activities. Recent reports show that it spent $290 million on activities to help re-install former President Donald Trump back in the White House.
Dogecoin promotion aside, Elon Musk, CEO of Tesla, is heading the new Department of Government Efficiency (DOGE). He promises to save money by eliminating waste, cutting burdensome regulations, and shrinking the federal government by tens of thousands of jobs. This pilot program is the latest example of Musk’s ongoing effort to improve productivity throughout what is becoming an increasingly tough economic environment.
Regarding model mix performance, Tesla delivered 12,881 units of its other models such as the long-awaited Cybertruck. Production and sales of Tesla electric vehicles built in China plummeted to 78,828 in March, or about 11.5% drop compared with the same month last year. This slump can likely be blamed on rising local competition and consumers making the switch to other brands.
Tesla’s stock performance further highlights the company’s struggles in the current market. Shares dropped by 36% throughout the first quarter, the sharpest decline since the fourth quarter of 2022. Tesla’s market share has cratered, plummeting from a high of 17.9% to just 9.3% over the last year. This decline is indicative of a larger trend among 15 European countries.
Analysts were forecasting an average estimate of approximately 377,590 deliveries for Tesla in the first quarter. The real number of 386,810 was even higher than that projection. Still, it underscores the work that remains for the company to continue overcoming significant challenges to stay atop a fast-moving electric vehicle market.
Tesla dramatically increased their production and produced 345,454 of their Model 3 and Model Y electric vehicles. This truly remarkable production came in the midst of Q1. Out of these, 323,800 units were actually delivered in the same period. This continued impressive performance is a testament to the robust and pending demand for these models in spite of outside-in pressures.