Tesla (TSLA) has officially released its Q2 result and deliveries report for 2024 that confirm it produced 410,831 vehicles and delivered 443,956. After the report has been relesed the Tesla shares has been jumped up by 10%, here are the detailed breakdown about the deliviries.
Deliveries by Model:
Tesla reported a total of 443,956 deliveries in Q2, a 22% increase from the same period last year. and Tesla’s shares increased by 10% on Tuesday after the company posted stronger-than-expected delivery numbers. Here’s a model-by-model breakdown.
The Model 3/Y continues to be the driving force behind Tesla’s sales, accounting for nearly 92% of total deliveries.The Model S/X, while still a significant contributor, saw a slight decline in deliveries compared to Q1.
Deliveries and Production
Tesla delivered 443,956 vehicles in Q2 2024, beating analyst expectations of 439,000. While this represents a 4.8% decline from the same period last year, it’s a 14.8% increase from the first quarter. The company produced 410,831 vehicles in Q2, with deliveries being the closest approximation of sales disclosed by Tesla.
Challenges Ahead
Despite the positive delivery numbers, Tesla faces several challenges ahead. The company’s aging lineup of vehicles, increased competition from other EV makers, especially in China, and brand erosion attributed to CEO Elon Musk’s “antics” and “political rants” have all contributed to sluggish sales. Additionally, temporary factory shutdowns in Germany and shipping delays following Red Sea conflicts have also impacted sales.
Incentives and Discounts
Tesla has offered a wide range of discounts and incentives this year. In China, the company is currently offering a zero-interest loan to customers who purchase a Model 3 or Model Y by July 31. China is a crucial and more trickey market for Tesla, accounting for 22.5% of total sales in 2023.
Analyst Predictions
Colin Langan, an analyst at Wells Fargo, has predicted declining delivery growth driven by lower demand and diminished returns on price cuts. He recommends selling Tesla shares, citing the likelihood of more price cuts and lower volumes as the year continues.
Growth Story Returns
However, not all analysts are bearish on Tesla’s prospects. Dan Ives, an analyst at Wedbush, believes that the worst is behind Tesla and that better days are ahead. He notes that the company has cut 10% to 15% of its workforce to reduce costs and preserve profitability.
In conclusion Tesla is scheduled to unveil a purpose-built robotaxi at an event on 8th August and also working on a new, smaller, and less expensive vehicle, the Model 2 As the EV market continues to evolve, Tesla’s ability to adapt and innovate will be crucial to its success.
