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In the wake of Tesla CEO Elon Musk’s huge payday, the company released its latest quarterly production and delivery report, showing declines from last year in both production and deliveries.
Tesla reported production of 410,831 vehicles in the three-month period ending in June, a 14 percent drop compared to the second quarter of 2023. Tesla reported delivering 443,956 vehicles to customers during the second quarter of 2024, a down 4.76 percent compared to the 466,140 vehicles it delivered. in the second quarter of 2023.
This continues a trend that began earlier this year when Tesla reported its first annual sales drop since 2020. The company continues to struggle with demand as customers have more options than ever when purchasing a car. electric vehicle. This reversed last quarter’s sequential drop in deliveries, with a 14.8% increase compared to the first quarter.
But production problems do not fully explain the drop in deliveries to customers. Tesla’s market share has declined as traditional automakers continue to release new models. It’s now hovering around 50% of the market, down from an 80% share in 2020. And while other automakers report double-digit growth in EV sales, Tesla’s sales continue to decline.
There are a number of reasons for this: Musk’s online antics, gaps in the company’s vehicle lineup, and increased competition. The vast majority of Tesla’s sales – more than 90% – come from just two models: the Model 3 and the Model Y. The Cybertruck, the company’s great hope in stainless steel, is extremely polarizing and forever remembered.
Tesla does not disclose its numbers regionally, so it is impossible to identify the company’s main weaknesses. Registration trackers indicate that Europe is a growing problem. But China, Tesla’s most important market, may be looking up thanks to lower interest rates and new incentives.
It looks like it’s going to be a busy summer for Tesla. As it continues to sort through the wreckage of this year’s multiple rounds of layoffs, the company is expected to release its second-quarter earnings later this month. And then, on August 8th, there will be the big robotaxi reveal, where Musk will make his most damning proposal for Tesla’s future as an AI and robotics company.
This may be the future, but the present is still cars.
