Editor-DN
Tesla CEO and X owner Elon Musk speaks during a Tesla product unveiling event on Oct. 10, 2024, in Los Angeles.
Tesla | By Reuters
Tesla posted its fourth-quarter vehicle production and deliveries. Report on Thursday. Here are the key numbers:
Total deliveries Q4 2024: 495,570
Total production Q4 2024: 459,445
Total annual deliveries 2024: 1,789,226
Total annual production 2024: 1,773,443
The quarterly results represent the first annual decline in delivery numbers for Tesla, which reported 1.81 million deliveries in 2023. It reported 484,507 deliveries in the fourth quarter of 2023.
Tesla shares were down more than 7 percent on Thursday.
Analysts had expected Tesla to report shipments of 504,770 in the quarter, including 474,000 Model 3 and Model Y EVs, according to consensus estimates compiled by StreetAccount. Tesla sent some investors the company-compiled delivery consensus of 506,763 vehicles based on a survey of 26 analysts. A widely followed independent Tesla researcher, publishing as Troy Tesla, predicted deliveries of 501,000.
The delivery is the closest estimate of sales reported by Tesla but is not precisely defined in the company’s shareholder communications.
The fourth-quarter report comes after a big year-end rally in Tesla’s stock, which sent it up 63% in 2024. In mid-December, shares hit a record high, hitting their previous highest level since 2021.
It was a big turnaround from the first quarter, when the stock fell 29 percent, its worst period since 2022, as the company battled declining sales despite price cuts and incentives for shoppers. On the company’s first-quarter earnings call in April, CEO Elon Musk told investors that while he expected “higher sales this year than last year,” growth would slow to 38 percent in 2023. will be done
Tesla’s biggest story in the last half of the year was Musk’s role in President-elect Donald Trump’s campaign. Musk, the world’s richest man, poured nearly $277 million into advertising for Trump and other Republican candidates and spent weeks campaigning on the streets in swing states.
Elon Musk speaks with US President-elect Donald Trump during the launch of the sixth test flight of the SpaceX Starship rocket on November 19, 2024 in Brownsville, Texas, US.
Brandon Bell | By Reuters
Musk, who also runs SpaceX and xAI and owns social network X, has been tapped to co-lead a Trump administration advisory group aimed at reducing federal spending, staffing and regulations.
Sam Fiorani, vice president of industry research group AutoForecast Solutions, told CNBC in an email that Musk’s foray into politics has “taken his focus away from his core business.” However, he said the degree to which investors or EV buyers care won’t be reflected in Tesla’s numbers until the first quarter.
Until recently, Tesla was one of the only automakers to mass-produce battery electric vehicles. The company now faces an onslaught of competition from domestic automakers, including General Motors, Ford And Raven Also BYD in China, Hyundai in Korea, and European auto companies BMW And Volkswagen.
Patrick George, editor-in-chief of InsideEVs, told CNBC that he thinks Tesla still does a lot of things better than any other EV maker, especially when it comes to its charging network. But Tesla’s biggest operational challenge in the latest quarter was “the nuts and bolts of being a car company.”
‘Pile up on used car lots’
Tesla has invested in its humanoid robotics initiative and chip development, and plans to develop a dedicated robotics and driverless ride service before 2027. While Musk and shareholders don’t want to see Tesla as just a car company, the majority of profits are still derived from vehicle sales.
George said Tesla made a mistake by not bringing out a “more affordable EV in 2024” and added that the Cybertruck — the company’s latest vehicle — “is piling up used cars.” The angular steel Cybertruck starts at around $80,000.
With rivals picking up market share in Europe, Tesla suffered a sharp decline in sales in the region during the fourth quarter.
According to registration data from the European Automobile Manufacturers Association, or ACEA, from January to the end of November, Tesla sold 283,000 vehicles in Europe, down about 14% from the same period a year ago. Registrations in Europe rose to 18,786 in November from about 31,810 a year ago.
The company’s business in China remained under pressure in the fourth quarter.
Fiorani said that while the Model Y is the second best-selling model in China, “its growth is failing to keep up with market growth.” As of November, Model Y sales were up more than 5 percent but overall EV sales in the country were up 8 percent, he said.
Meanwhile, BYD and other brands in China, including Chery, Li Auto, Jetour, LeapMotor and Aito, grew much faster than Tesla. BYD is also setting up plants outside China and is exporting prodigiously.
In North America, Tesla has been dominant. The company offered several incentives and Price dropeven on its most popular Model Y SUV, to boost sales during the fourth quarter. Still, Tesla experimented with building inventory.
During the fourth quarter, the company sent Cybertruck assembly line workers home for a few days, indicating that it is trying to avoid flooding the market with too many vehicles.
Looking ahead to 2025, Musk said on an earnings call in October that Tesla expects to offer low-cost and autonomous vehicles in 2025, leading to “20% to 30% growth” through 2024.
Look: The Chinese auto market could reach 55-60% EVs by the end of 2025.
