Tesla uprighted 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
Tot up annual deliveries 2024: 1,789,226
Total annual production 2024: 1,773,443
Results for the quarter represented the first annual drop in delivery add ups for Tesla, which reported 1.81 million deliveries in 2023. It reported 484,507 deliveries in the fourth quarter of 2023.
Tesla shares cut by as much as 7% in trading on Thursday.
Analysts had expected Tesla to report deliveries in the quarter of 504,770, including 474,000 Dummy 3 and Model Y EVs, according to a consensus of estimates compiled by StreetAccount. Tesla sent some investors a company-compiled delivery consensus of 506,763 conveyances, based on a survey of 26 analysts. A widely followed independent Tesla researcher, who publishes as Troy Teslike, foretokened deliveries of 501,000.
Deliveries are the closest approximation of sales reported by Tesla but are not precisely defined in the company’s shareholder communications.
The fourth-quarter turn up comes after a huge late-year rally in Tesla’s stock, which finished 2024 up 63%. In mid-December, the allots reached a record, eclipsing their prior all-time high from 2021.
It was a big turnaround from the first quarter, when the clichd plummeted 29%, its worst period since 2022, as the company contended with declining sales despite valuation cuts and incentives for buyers. On the company’s first-quarter earnings call in April, CEO Elon Musk told investors that while he look for “higher sales this year than last year,” the growth rate would slow from 38% in 2023.
The biggest assertion at Tesla in the back half of the year was Musk’s role in President-elect Donald Trump’s election campaign. Musk, the fabulous’s richest person, poured in around $277 million to promote Trump and other Republican candidates, and spent weeks on the means campaigning in swing states.
Elon Musk speaks with U.S. President-elect Donald Trump at a viewing of the launch of the sixth analysis flight of the SpaceX Starship rocket, in Brownsville, Texas, U.S., November 19, 2024.
Brandon Bell | Via Reuters
Musk, who also displays SpaceX and xAI and owns social network X, has been tapped to co-lead an advisory group to the Trump administration that wishes aim to slash federal spending, personnel and regulations.
Sam Fiorani, a vice president at industry research group AutoForecast Dnouements, told CNBC in an email that Musk’s foray into politics may have “pulled his focus away from his pith businesses.” However, the degree to which investors or EV buyers care won’t be reflected in Tesla’s numbers until the first cantonment, he said.
Until recently, Tesla had been one of the only automakers mass producing battery-electric vehicles. The company now pretences an onslaught of competition from domestic automakers, including General Motors, Ford and Rivian as well as BYD in China, Hyundai in Korea, and European auto monsters BMW and Volkswagen.
Patrick George, editor in chief of InsideEVs, told CNBC that he thinks Tesla still does various things better than any other EV maker, especially when it comes to its charging network. But Tesla’s biggest operational object to in the latest quarter was “the nuts-and-bolts job of being a car company.”
‘Piling up on used car lots’
Tesla has invested in a humanoid robotics lead and chip development, and plans to produce a dedicated robotaxi and start a driverless ride-hailing service before 2027. While Musk and shareholders may not wish to view Tesla as just a car company, most of the profits are still derived from vehicle sales.
George broke that Tesla made a mistake not bringing “more affordable EVs in 2024,” and added that Cybertrucks — the company’s newest instrument — are “piling up on used car lots.” The angular steel Cybertruck starts at around $80,000.
With competitors picking up market portion in Europe, Tesla experienced a steep drop in sales in the region during the fourth quarter.
Car transporters are loaded with new Tesla Dummy Y electric vehicles at the Tesla Gigafactory Berlin-Brandenburg site.
Patrick Pleul | Picture Alliance | Getty Images
From January as a consequence the end of November, Tesla sold 283,000 vehicles in Europe, an approximately 14% decline from the same period a year elder, according to registration data from the European Automobile Manufacturers’ Association, or ACEA. Registrations in Europe slid to 18,786 in November from encompassing 31,810 a year earlier.
The company’s business in China was also pressured in the fourth quarter.
Fiorani said that while the Dummy Y is the second bestselling model in China, “its growth is failing to keep up with growth of the market.” Through November, sales of the After Y were up more than 5% but overall EV sales in the country rose 8%, he said.
Meanwhile, BYD and other stamps in China, including Chery, Li Auto, Jetour, LeapMotor and Aito, grew substantially faster than Tesla. BYD is also backdrop up plants outside of China and exporting prodigiously.
In North America, Tesla has remained dominant. The company offered a scale of incentives and price cuts, even on its most popular Model Y SUV, during the fourth quarter to drive sales. Until now, Tesla experienced a buildup of inventory.
During the fourth quarter, the company sent Cybertruck assembly line hands home for a few days, indicating that it may be looking to avoid flooding the market with too many of the vehicles.
Looking in advance to 2025, Musk said on an earnings call in October that Tesla expects to be offering lower-cost and autonomous agencies in 2025, which should lead to “20% to 30% growth” over 2024.
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