It recently announced the number of vehicles it delivered in the first three months of 2024. The number dropped significantly from both the previous quarter and the 2024 quarter. During this period, the company produced 386,810 electric vehicles.
This is a 20% decrease from the 484,507 vehicles Tesla delivered in the fourth quarter of 2023, and an 8% annual decrease. This is Tesla’s first annual sales decline since 2020. pointed out. The numbers were also well below forecasts – analysts on average expected Tesla to deliver 449,080 electric vehicles.
There are some mitigating factors at play, e.g. notes. Tesla had to close its factory in Germany for nearly a week due to an arson attack. Most production at factories in the Berlin area was also suspended for two weeks as Houthi attacks on international shipping in the Red Sea disrupted shipping. Tesla also pointed to early production increases as another reason for the drop in deliveries.
Tesla said it produced 412,376 Model 3 and Y vehicles and 20,995 other models in the first three months of 2024, for a total of 433,371 vehicles. Among them, the delivery volume of Model 3 and Model Y was 369,783 units. The company did not detail how many it built and delivered.
As usual, Tesla tried a few tactics to boost sales at the end of the quarter, such as offering free trials of Full Self-Driving again (despite the name, it’s not a self-driving system). The company also hinted to potential buyers on the fence that they should snap up an electric car before the April 1 price increase. Sure enough, on Monday, the company cut the price of each Model Y in the United States by $1,000.
Earlier this year, Tesla CEO Elon Musk warned that the company was between “two major waves of growth” – the Model 3 and Y boom, and low-cost electric vehicles expected to be launched by the end of 2025. As a result, he warned investors that Tesla’s sales growth this year may be “significantly lower.”
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