Yesterday, Tesla released its quarterly results for Q1 2024, and unfortunately, they fell short of expectations. Tesla disclosed that they had delivered 386,810 vehicles while producing 433,371 vehicles. This marked a significant decline for Tesla, as this was its first year-over-year delivery decline in nearly four years. Initially, the Wall Street consensus had estimated deliveries to be around 470,000, making the actual numbers a big letdown.
There’s been lots of speculation regarding the reasons behind this quarter’s underwhelming performance. Tesla attributed part of the decline to the early phase of the production ramp of the updated Model 3 at their Fremont factory and factory shutdowns due to shipping diversions caused by the Red Sea conflict and an arson attack at the Gigafactory in Berlin. While Tesla’s explanation holds merit, with many customers who ordered the new Model 3 in January still awaiting delivery, the full picture may not be evident until next quarter’s results are released.
Many have been quick to call out the media’s focus on Tesla’s 20.2% quarter-on-quarter decline while overlooking BYD’s (China’s largest EV manufacturer) nearly 43% quarter-on-quarter decline. Even Tesla CEO Elon Musk took to X to express his frustration about this oversight.
However, it’s worth noting that while BYD experienced a significant decline compared to the previous quarter, their year-over-year growth stands at a respectable 13%, contrasting with Tesla’s 8.5% year-over-year decline. Many argue that the year-over-year figure is a more meaningful metric.
Looking ahead, there’s hope that Tesla can rebound in the coming quarter, assuming Tesla can address production challenges and avoid further disruptions in Giga Berlin. But despite the 8.5% decline, Tesla retains its position as the world’s largest EV manufacturer, reclaiming the crown from BYD, which lost its top spot this month.
