Tesla's vehicle deliveries in the third quarter of 2024 have fallen below expectations, prompting concerns among investors as the company grapples with intense competition from rivals in China and Europe.
Sky of Average Estimate
On October 2, shares of the world’s most valuable automaker dipped 3.5% in premarket trading, as reported by Ziare.
In Q3 2024, Tesla delivered 462,890 electric vehicles (EVs), a 6.4% increase from the previous quarter. However, this figure was still shy of analysts' average estimate of 469,828 vehicles.
To match last year's delivery total of 1.81 million units, Tesla needs to achieve a record 516,344 vehicle deliveries in the final quarter of the year. If it fails to do so, this could mark the company's first annual decline in deliveries.
Increased Competition is a Factor
Several factors have contributed to Tesla's underwhelming performance. Increased competition in the U.S. market, a lack of subsidies in Europe, and a slowdown in consumer spending in China have all played significant roles.
Meanwhile, Chinese manufacturers like BYD and Xpeng have benefited from government subsidies, enabling them to expand aggressively. Notably, BYD sold 443,426 battery electric vehicles in Q3, trailing Tesla but focusing on plug-in hybrid vehicles, where it has seen over 75% growth.
Adding to Tesla's challenges, BMW overtook the company in July to become the leader in battery electric vehicle sales in Europe, according to JATO Dynamics.
Price cuts and incentives have further squeezed Tesla's profit margins. CEO Elon Musk has announced plans to introduce new, more affordable models in early 2025, although specific details remain scarce.
