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July 02, 2024
Tesla: Tesla Inc. has reported a drop in vehicle deliveries for the second straight quarter. This comes despite efforts by CEO Elon Musk to slow the decline. On Tuesday, the company announced it delivered 443,956 vehicles in Q2. That number beat analysts’ expectations, which averaged around 439,302.
Compared to the same period last year, deliveries were down by 4.8%. However, the numbers did improve when compared to the first quarter of this year. In Q1, Tesla delivered 386,810 vehicles. So while year-over-year figures declined, there was a noticeable recovery from the previous quarter.
Tesla built a total of 410,831 vehicles in the second quarter. That’s about 14% fewer than what it produced during the same time last year. The company hasn’t shared a reason yet for the drop in both production and sales. More details are expected when Tesla announces its Q2 earnings on July 23.
Despite the dip, Tesla’s stock saw a strong boost. Shares were up by 6.7% as of 9:52 a.m. in New York. Tesla has faced a rough year so far. In April, Elon Musk announced major job cuts across the company.
Internally, there were efforts to shrink the workforce by up to 20%. Many of those affected were part of the sales team. This may have impacted the company’s delivery numbers. Meanwhile, Tesla’s much-awaited Cybertruck — its first new model in years — has seen a slow production ramp-up.
Tesla pointed to a few major setbacks for its weak first-quarter performance. One was a suspected arson incident at its factory near Berlin. Another was shipping delays caused by disruptions in the Red Sea. Over the past three months, such external challenges have eased.
However, Tesla is still finding it tough to grow. A key reason could be its aging lineup, as no major new models — apart from the Cybertruck — have hit the market recently. Over the last 18 months, Elon Musk pushed for price cuts across Tesla’s entire lineup.
But those discounts haven’t been enough to keep the company’s momentum going. In the second quarter, Tesla delivered 422,405 units of its most popular models — the Model 3 and Model Y. That’s a drop from the 446,915 vehicles it delivered during the same period last year.
The Austin-based EV maker is still working to regain its sales strength. Tesla still hasn’t shared exact sales numbers for the Cybertruck.
The company began delivering the electric pickup late last year. However, two recall notices in June suggest that over 11,000 Cybertrucks have already reached customers.
At Tesla’s annual shareholder meeting last month, Elon Musk revealed that 1,300 Cybertrucks were built in a single week. He didn’t mention the exact timeframe for that production.
It’s also unclear whether Tesla can continue producing at that same pace moving forward. Tesla achieved another milestone in its energy storage business. For the second straight quarter, the company set a new record.
In the past three months, Tesla deployed about 9,400 megawatt hours of energy storage. That’s more than double the 4,053 megawatt hours it managed in the first quarter.
With this rapid growth, Tesla has nearly matched its total energy storage deployments for all of last year — and it's only halfway through 2024. Tesla’s energy division has offered a bit of hope during its slowdown in vehicle sales.
This unit includes Powerwall batteries for homes and Megapacks for larger, commercial clients. Despite strong growth in deployments, turning that success into major revenue remains a challenge.
Interestingly, Tesla still earns more money from its “services and other revenue” category than from energy generation and storage. So, while the energy business is expanding, it hasn’t yet become a major revenue driver.
Elon Musk has shared plans to launch new, budget-friendly Tesla models by early next year. So far, the company hasn’t revealed much about these upcoming vehicles.
It has only confirmed that they’ll be made on the same production lines as current models. At the same time, Musk is putting major focus on Tesla’s self-driving robotaxi project. He’s set to unveil the robotaxi at a dedicated event on August 8.
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