Tesla delivered fewer vehicles to customers for the second quarter in a row
Tesla's Q2 2024 vehicle deliveries fell 4.76% year-over-year, with production dropping 14%. Increased competition and production issues challenge the EV maker.
Tesla's Q2 2024 vehicle deliveries fell by 4.76% to 443,956 compared to 466,140 in Q2 2023, while production dropped 14% to 410,831 vehicles during the same period. This marks the second consecutive quarter of declining deliveries, underscoring ongoing demand issues amid a competitive market for electric vehicles.
The company has struggled with production slowdowns, notably due to the ramp-up of the new Model 3 at its Fremont factory and supply chain issues impacting its Berlin Gigafactory. Despite these setbacks, Tesla saw a sequential increase in deliveries by 14.8% over Q1, yet its market share has plummeted to around 50% from 80% in 2020, as legacy automakers report robust growth in EV sales.
Tesla's sales depend heavily on two models, the Model 3 and Model Y, which account for over 90% of deliveries. The company's regional performance remains unclear, although indications are that Europe is faltering while China's market looks more promising due to lower interest rates and new incentives. Amidst these challenges, Tesla is gearing up for significant events like its Q2 earnings report and the robotaxi reveal on August 8th, which may shape its future as an AI and robotics leader.