Tesla Model S
Tesla on Tuesday announced its second-quarter vehicle production and delivery figures for 2024, surpassing analysts’ expectations.
The electric vehicle (EV) manufacturer delivered 443,956 vehicles, exceeding Wall Street estimates of 439,000 according to FactSet StreetAccount.
Production for the quarter reached 410,831 vehicles.
Tesla’s performance in the second quarter was notable, with deliveries up 14.8% from the first quarter of 2024, though down 4.8% compared to the same period last year.
This exceeded analysts’ predictions, leading to an over 8% rise in the EV maker’s shares in early trading on Tuesday.
Despite this, the EV maker’s shares have faced a 16% decline in 2024, even after a 6% rally on Monday.
Tesla’s vehicle deliveries are categorized into Model 3 and Model Y vehicles and all other models.
The current lineup includes the popular Model Y crossover utility vehicles, Model 3 sedans, new Cybertruck pickups, Model X SUVs, and Model S sedans.
The company does not disclose individual model or specific regional delivery numbers.
In April, the Elon Musk led company reported an 8.5% drop in first-quarter deliveries to 386,810, marking the first annual decline since 2020.
This was followed by a 13% year-over-year revenue decline for the quarter, primarily due to a lower average selling price.
The sales decline in the first quarter was partly attributed to temporary factory shutdowns in Germany due to an alleged arson attack, and shipping delays from Red Sea conflicts.
Additionally, increased competition, especially from Chinese EV makers, and brand erosion linked to CEO Elon Musk’s public behavior have also played roles.
Tesla has offered various discounts and incentives to boost sales.
In China, the US EV maker is currently offering a zero-interest loan for customers purchasing a Model 3 or Model Y by July 31.
According to its 2023 annual filing, the company generated approximately $21.75 billion from China, accounting for 22.5% of total sales.
Wells Fargo analyst Colin Langan issued a report on Monday predicting declining delivery growth for Tesla due to lower demand and reduced returns on price cuts.
Investor attention will now shift to the EV maker’s second-quarter earnings report, expected later this month, and a marketing event in August where the company plans to unveil its design for a dedicated robotaxi or “CyberCab.”
Tesla’s production of 410,831 vehicles during the quarter was 14% lower than the same period last year. Further details are anticipated in the upcoming earnings report on July 23.
Tesla has faced a challenging year, with CEO Elon Musk announcing significant staff reductions in April, aiming to cut headcount by up to 20%.
These reductions included sales employees, potentially contributing to weaker delivery figures. The Cybertruck, Tesla’s first new model in years, has also been slow to ramp up.
Price cuts across Tesla’s lineup over the past year and a half have not fully sustained momentum.
The company delivered 422,405 Model 3 and Model Y vehicles in the second quarter, down from 446,915 a year ago.
Tesla has not yet detailed Cybertruck sales, but two recall campaigns in June suggest over 11,000 trucks have been delivered to customers.
During the annual shareholder meeting, Musk mentioned a weekly production rate of 1,300 Cybertrucks, though specifics were not provided.
Tesla reported a record in its energy storage business for the second consecutive quarter, deploying around 9,400 megawatt hours in the last three months, up from 4,053 megawatt hours in the first quarter.
This nearly matches the energy storage products deployed throughout the entire previous year in just the first half of 2024.
While the energy storage unit, which includes Powerwall batteries for homes and Megapacks for commercial customers, shows promise amid declining vehicle sales, converting these gains into substantial revenue remains a challenge.
Tesla’s “services and other revenue” segment typically generates more sales than energy generation and storage.
Musk has indicated that Tesla will introduce new, more affordable models by early next year, with few details provided.
The CEO has also prioritized the development of a fully autonomous robotaxi, with a planned unveiling event on August 8.
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