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Tesla Reports Lower Than Expected Vehicle Deliveries in Q1 2024
Tesla, the prominent electric vehicle manufacturer headed by CEO Elon Musk, disclosed on Tuesday that it had delivered 386,810 electric vehicles during the initial three months of 2024. This figure fell significantly below the projections of financial experts on Wall Street.
In the aftermath of a challenging first quarter that one analyst described as a “nightmare,” a multitude of analysts decided to revise their estimates downwards. Despite this, the actual sales numbers reported by Tesla were even more disappointing, failing to meet the revised estimates.
Breakdown of Sales
The Texas-based company specified that it had managed to sell 369,784 Model 3 compact cars and Model Y SUVs within the span of January to March, along with an additional 17,027 units of other electric vehicles. Although Tesla does not provide a detailed breakdown of these deliveries, the figures encompass sales of the Model X crossover SUV, Model S sedan, and the Cybertruck—Tesla’s electric pickup which was introduced to the market in November of the previous year.
Comparing this sales performance to the same period in the prior year, Tesla experienced a decline of more than 8% in its quarterly sales.
Production Challenges and Disruptions
One of the primary reasons behind the diminished sales figures was the lower production output by the electric vehicle manufacturer in the first quarter of 2024 in contrast to the corresponding period in 2023. This decline was attributed to factory improvements and logistical disruptions overseas. Tesla managed to assemble a total of 433,371 electric vehicles in the last quarter, as opposed to the 440,808 produced in the previous year.
FactSet data revealed that Wall Street analysts had initially forecasted deliveries of approximately 457,000 electric vehicles for Q1. However, following the disappointing sales update, analysts like Emmanuel Rosner from Deutsche Bank adjusted their estimates downward. Rosner, who currently recommends Tesla stock as a “buy,” reduced his delivery forecast from 427,000 units to 414,000 units and revised the full-year expectations from 2.06 million units to 1.9 million units. Meanwhile, Adam Jonas from Morgan Stanley also revised his delivery estimate from 469,000 units to 425,000 units. Furthermore, Jonas had previously mentioned the possibility of Tesla operating at a loss for the year.
This situation is still developing, and updates will be provided as more information becomes available.
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