Shares of Tesla, Inc. experienced a significant drop of approximately 6.1% during Thursday's regular trading session following the luxury electric vehicle manufacturer's first recorded decline in annual deliveries. The company also disclosed weak production figures both annually and for the fourth quarter, although quarterly sales exceeded previous levels.
On the Nasdaq, however, Tesla's stock showed resilience, rising by 1.1% in Thursday's extended trading and currently up by 0.4% in pre-market activities to reach $380.88.
In late October, while revealing positive third-quarter results, Tesla had anticipated modest growth in vehicle deliveries for 2024, despite ongoing challenging macroeconomic conditions. Additionally, the company expected energy storage deployments to more than double on a year-over-year basis in 2024.
Tesla has simultaneously been contending with intense competition from domestic giants like General Motors, Ford, and Rivian, alongside formidable players from China and Europe.
During the fourth quarter, Tesla produced 459,445 vehicles, falling short of approximately 495,000 vehicles produced in the same period the previous year. Deliveries totaled 495,570, compared to over 484,000 vehicles delivered the prior year. Production of the Model 3/Y reached 436,718 vehicles, while its deliveries amounted to 471,930. Other model production totaled 22,727 vehicles with deliveries at 23,640.
The company also set a new benchmark by deploying 11.0 GWh of energy storage products in the quarter. This achievement marked a milestone for both deliveries and deployments, as noted by the firm.
In the preceding third quarter, Tesla produced approximately 470,000 vehicles and delivered about 463,000, while energy storage product deployments stood at 6.9 GWh.
The total annual production included 1.773 million vehicles with 1.789 million deliveries. In 2023, production was recorded at 1.85 million, and vehicle deliveries at 1.81 million.
For the year, production of the Model 3/Y reached 1.679 million vehicles, with deliveries at 1.704 million. Other models saw production of 94,105 vehicles and deliveries of 85,133.
Tesla reported deploying 31.4 GWh of energy storage products throughout 2024.
In the company's latest third quarter, they posted higher-than-expected profits with revenues increasing by 7.8%, driven by substantial volume growth. However, a reduction in average selling prices (ASPs) was primarily due to financing incentives.
During an earnings call, Tesla’s CEO Elon Musk remarked on the firm's record deliveries for the quarter despite the industry's year-over-year decline in order volumes. He also cautioned that maintaining positive margins in the fourth quarter may prove challenging given the prevailing economic conditions.
Tesla, which earns the majority of its profit from electric vehicles, has expanded into humanoid robotics, chip development, and the Cybercab robotaxi, aiming for volume production by fiscal 2026. The company targets at least 2 million robotaxi units annually, with a potential increase to 4 million.
Tesla shares have shown an upward trend, particularly following Donald Trump's presidential victory and Musk's involvement in the election campaign.
In his victory speech, Trump praised Musk, who was a significant donor during the election, calling him a "new star" of the Republican Party. Trump also appointed Musk, along with Vivek Ramaswamy, to jointly lead a newly proposed Department of Government Efficiency in his forthcoming administration.
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