Tesla has released its production and delivery figures for the fourth quarter and the full year of 2024, revealing a total of 495,570 electric vehicles delivered. This figure, however, falls short of market expectations and the company’s previous guidance, which had anticipated delivering more than 515,000 vehicles. Analyst projections for the quarter had estimated around 507,000 deliveries.
During the fourth quarter, Tesla produced 459,445 vehicles, comprised chiefly of Model 3 and Model Y. While the total production and delivery numbers reflect a slight 1% decrease compared to 2023’s figures, this marks a notable shift from the previous year’s robust growth of 38%. The specifics of the fourth-quarter figures show that 436,718 units of the Model 3/Y were produced with 471,930 units delivered, and deliveries of other models were similarly low.
Tesla achieved these results despite offering significant discounts and customer incentives, including free Supercharging and Full Self-Driving options. Analysts noted the stock market’s immediate reaction, with shares initially climbing nearly 2% before dropping approximately 3% following the report.
Importantly, while the automotive side of the business showed a decline, Tesla has seen substantial growth in its energy storage division, deploying a record 11 GWh of energy storage through products like Megapack and Powerwall. This diversification may provide a buffer against challenges faced in the automotive market.
Despite the disappointing delivery numbers, Tesla has an opportunity to recalibrate and strengthen its position by leveraging its energy storage business, which can drive future growth. There is optimism to be had, as the electric vehicle sector continues to evolve, and Tesla’s ongoing innovations could lead to a resurgence in sales in the upcoming quarters.
In summary, while Tesla’s performance fell short of expectations, the growing energy sector and the company’s history of resilience present a potential pathway for recovery and growth.