Tesla (TSLA) has announced record deliveries for the fourth quarter, although they fell short of analysts’ expectations. The electric vehicle manufacturer produced 459,445 vehicles and delivered 495,570 units worldwide during Q4. Additionally, Tesla deployed 11 gigawatt-hours of energy storage products, bringing the total for the year to 31.4 gigawatt-hours. In total, Tesla delivered 1.789 million vehicles and produced 1.773 million in 2024.
Despite an impressive 38% increase in vehicle deliveries in 2023, Tesla had anticipated only modest growth for 2024. The company faced challenges with weaker sales in the U.S. and Europe, leading to promotional discounts to stimulate demand. While China performed robustly in Q4, the slower markets elsewhere posed issues for achieving the targeted delivery numbers.
While analysts predicted Q4 deliveries of around 498,000 units, the company needed to surpass 514,925 to exceed last year’s total of 1.81 million vehicles. Factors contributing to the lower-than-expected results include a mature product lineup and increased competition from lower-priced models. A Morgan Stanley analyst pointed out that anticipations for a new, more affordable model expected in early to mid-2025 may overshadow current sales efforts.
Following the announcement, Tesla’s stock fell by 6% to $379.28. Previously, shares had increased 62.5% during 2024, with significant gains in the fourth quarter, partially attributed to political developments.
Positive developments for Tesla include the dual-motor Cybertruck now qualifying for a $7,500 IRA tax credit, which may provide a boost in demand as it approaches 2025. Despite the recent downturn in stock price, Tesla remains a leading player in the industry, holding the top position in the IBD Auto Manufacturers group and maintaining strong Composite and Relative Strength Ratings.
In conclusion, while Tesla has encountered some headwinds in terms of deliveries, the company’s ongoing innovations and strategic decisions may lead to renewed growth and market confidence in the coming years. The introduction of new models and tax incentives for consumers could catalyze a rebound in demand, setting the stage for a stronger performance in 2025 and beyond.