Over the first 3 months of the year, Tesla saw its vehicle sales fall for the first time in almost 4 years. However, the company lowered its prices to reach more customers and better position itself vis-à-vis the competition.
The manufacturer delivered 387,000 electric cars during the first quarter of 2024, for 433,000 vehicles produced. This represents a decrease of 20.2% compared to the previous quarter, and 8.5% year-over-year.
The last time Tesla saw such a drop was in 2020, when the pandemic forced the industry to halt production. The company failed to meet Wall Street’s predictions, which expected sales of 454,200 vehicles.
Multifactorial results
Elon Musk’s firm justifies this performance by its increased efforts in California, where its Fremont factory will increase the production capacities of the new Model 3. It also cites the attempted sabotage of its gigafactory in Berlin in early March. An arson attack led to the interruption of its production line, causing losses of hundreds of millions of euros for the manufacturer.
In detail, Tesla delivered 369,783 Model 3 and Model Y, and around 17,000 units of other models, including the Model S sedan, the Cybertruck and the Model X high-end SUV.
Its sluggish results reflect the limits of the price reduction started by the company about a year ago, in a context of increased competition. In the fourth quarter, Tesla lost its title as the world’s leading manufacturer of electric vehicles to Chinese manufacturer BYD. Historical players, like Toyota or General Motors, are also positioning themselves in the race while governments are calling for the end of the combustion engine.
Demand up, but not as much as expected
Tesla still outperformed BYD during the quarter. The manufacturer sold around 300,000 electric vehicles, an increase of 13% compared to the same period last year. In January, the American firm warned of growth in sales “ significantly lower » in 2024. It is now focusing its efforts on its next generation vehicles. Its stock price has fallen 30% since the start of the year.
Global demand for electric vehicles continues to grow rapidly. U.S. sales grew 40% in 2023, surpassing one million vehicles for the first time. Same story in France, where more than one in four cars sold was 100% electric or plug-in hybrid last year. The growth rate nevertheless remains below certain forecasts, prompting manufacturers like General Motors and Ford to revise their production plans downwards.
Sources: The Guardian, CNN
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