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Tesla Huge Q1’2024 Delivery Miss

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  • Tesla’s Quarterly Deliveries Fall for First Time Since 2020
  • EV maker blames production setbacks for the huge miss

Tesla announced a drop in its quarterly deliveries for the first time since 2020, falling short of Wall Street’s forecasts and raising additional worries regarding its growth outlook for the year.

The company’s vehicle sales for the first quarter were below the expectations set by analysts, showing a decline of 8.5% compared to the same period last year.

The electric vehicle maker, led by Elon Musk, disclosed that it had delivered 386,810[1] vehicles globally at the beginning of the year, marking its first annual drop in deliveries since 2020.

Source: Tesla Financials

This outcome enabled Tesla to regain its position as the leading electric vehicle (EV) seller globally on a quarterly scale, surpassing China’s BYD.

However, this development is concerning for the most valuable car manufacturer globally and reflects broader issues within the EV industry, where expansion is decelerating.

Several factors affected Tesla’s performance this quarter, such as disruptions in the supply chain caused by incidents in the Red Sea and stoppages at its German manufacturing facility prompted by environmental demonstrations.

The company also faced obstacles due to increasing competition in China and varied responses in the U.S. to its newly introduced Cybertruck.

Despite attempts to elevate sales through various promotions and emphasizing Tesla’s Full Self-Driving feature, these initiatives did not substantially enhance sales figures.

In the first quarter, Tesla’s vehicle production totaled 433,371[2], a decrease from the 440,808 vehicles produced in the same timeframe of 2023.

The discrepancy between the number of vehicles produced and those delivered indicates a potential demand problem, in addition to the recognized issues with production constraints.

Following a period of targeting an average annual growth rate of 50%, the prominent automobile manufacturer has signaled a significantly reduced growth rate for 2024, with competitors from China closely challenging its market position.

During the first quarter, BYD, which temporarily claimed the title of the world’s top EV seller in the last quarter, achieved global sales of 300,114 all-electric vehicles, marking an increase of 13% over the same period in 2023.

BYD’s electric vehicles, which are priced lower than those of Tesla, are predominantly sold in China. As the biggest automotive market in the world, China boasts a highly competitive electric vehicle landscape where Tesla finds itself increasingly challenged by domestic brands.

Tesla is experiencing a lack of new offerings, with its eagerly awaited affordable vehicle not anticipated to launch until the end of 2025 at the earliest. The company is set to announce its financial results for the first quarter on April 23.

Tesla’s stock has experienced a 32%[1] decline this year, ranking it as the second most significant underperformer in the S&P 500 index.

 

Investors can long Tesla using our 1x Tesla2x Tesla3x Tesla.

Alternatively, investors can short Tesla using our -1x Tesla-2x Tesla-3x Tesla.

 


Footnotes:
  1. Company data
  2. Company data
  3. Tradingview

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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Violeta Todorova

Senior Research

Violeta è entrata a far parte di Leverage Shares nel settembre 2022. È responsabile dello svolgimento di analisi tecniche e ricerche macroeconomiche ed azionarie, fornendo pregiate informazioni per aiutare a definire le strategie di investimento per i clienti.

Prima di cominciare con LS, Violeta ha lavorato presso diverse società di investimento di alto profilo in Australia, come Tollhurst e Morgans Financial, dove ha trascorso gli ultimi 12 anni della sua carriera.

Violeta è un tecnico di mercato certificato dall’Australian Technical Analysts Association e ha conseguito un diploma post-laurea in finanza applicata e investimenti presso Kaplan Professional (FINSIA), Australia, dove è stata docente per diversi anni.

Julian Manoilov

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Oktay Kavrak

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È entrato in LS da UniCredit, dove è stato responsabile delle relazioni aziendali per le multinazionali. La sua precedente esperienza è in finanza aziendale e amministrazione di fondi in società come IBM Bulgaria e DeGiro / FundShare.

Oktay ha conseguito una laurea in Finanza e contabilità ed un certificato post-laurea in Imprenditoria presso il Babson College. Ha ottenuto anche la certificazione CFA.

Sandeep Rao

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Sandeep è entrato a far parte di Leverage Shares nel settembre 2020. È responsabile della ricerca sulle linee di prodotto esistenti e nuove, su asset class e strategie, con particolare riguardo all’analisi degli eventi attuali ed i loro sviluppi. Sandeep ha una lunga esperienza nei mercati finanziari. Iniziata in un hedge fund di Chicago come ingegnere finanziario, la sua carriera è proseguita in numerose società ed organizzazioni, nel corso di 8 anni – da Barclays (Capital’s Prime Services Division) al più recente Index Research Team di Nasdaq. Sandeep detiene un M.S. in Finanza ed un MBA all’Illinois Institute of Technology di Chicago.

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