Tesla had its worst quarter since the pandemic shutdown

Tesla revealed preliminary production and delivery numbers for the first quarter on Tuesday, and they were down significantly — compared to the same period a year earlier for the first time since 2020 and the onset of the pandemic.

In the first quarter of 2024, while Tesla manufactured 433,371 vehicles, it delivered only 386,810 vehicles. Both figures are down compared to the previous quarter and the same quarter last year.

The decline in deliveries was much lower than what analysts had expected for the quarter until recent days, and this is particularly notable. That’s down sharply—nearly 20%—from the previous quarter and represents an 8.5% decline from the same quarter a year ago. The only downturn will come near Q2 of 2020, when the pandemic forced Tesla to halt production.

2024 Tesla Model Y. – Courtesy of Tesla, Inc.

Tesla has also raised prices in recent days Model YThis is The best selling vehicle on the planet In 2023.

Between the lines, Tesla says the drop in volume is partly due to a production ramp of the refreshed Model 3, known as the Highland, at the company’s factory in Fremont, California. According to the company, this was due to “shipping routes caused by the Red Sea conflict and factory shutdowns caused by the fire attack at Gigafactory Berlin”. This too has just started to ramp up Cybertruck Production and distributions.

Shoppers’ sentiment can have a huge impact on what Tesla CEO Elon Musk and the company stand for. One such analysis, released this week, pointed to Musk’s contribution Tesla’s “declining reputation”, and Cox Automotive expects growth of just 3% in the US while the rest of the EV market grows by 15%. Tesla’s share of the US EV market shrinks in 2023 Despite the price cuts.

With fluctuating growth like that, it should be noted that Tesla will outpace EV sales of any other automaker for some time.

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