Prime Highlights:
Tesla reported 495,570 units delivered in the final quarter of 2024, falling short of analysts’ expectations, which had estimated over 510,000 units.
For the first time in its history, Tesla experienced an annual decline in total deliveries, with 2024’s count reaching 1.79 million, slightly down from 1.81 million in 2023.
In addition, the company deployed 11.0 GWh of energy storage in Q4, bringing the total for the year to 31.4 GWh, more than double the 2023 figure.
Key Background:
Tesla’s shares fell 6% on Thursday following the release of fourth-quarter results that missed consensus expectations. While the company reported its highest-ever quarterly deliveries of 495,570 vehicles and a record 11 GWh of energy storage deployments, the vehicle delivery figure fell short of the anticipated 510,000 units.
The total deliveries of Tesla for the entire year stood at 1.79 million units, which represented a first-ever decline in the history of the firm for the annual cycle, lower than 1.81 million vehicles delivered in 2023. This decline describes the difficulties facing electric vehicle producers in an atmosphere of reduced demand from consumers globally for electric vehicles.
Total shipments by model were 471,930: the majority of these were the Model 3 and Model Y. Other models included Model X, Model S, and Cybertruck, at 23,640 units. The energy storage business had dramatically scaled up, the full year deployments at 31.4 GWh which was more than double of 2023.
Tesla has also steered modest growth in deliveries in 2024 with an expectation of delivering 20% to 30% more by 2025. Revenue growth and profit margins may perhaps turn the attention of investors when Tesla brings the fourth-quarter report on January 29, 2025.
The company will also start mass production of the affordable EVs in the first half of 2025, which is expected to produce more than 50 percent of the revenue. Tesla faces significant challenges to its market share due to increasing competition from BYD, a leading Chinese automaker, and the uncertainty surrounding government incentives for electric vehicles.