Tesla warned that 2024 was going to be a more challenging year for the company. One quarter in and it already looks that way. The electric vehicle market is getting model saturated and volume plateauing. Without incentives electric car sales would be falling as is what is currently happening in New Zealand.
Deliveries are down 14% in Q1 with some reasons given by Tesla for that. 2024 was always going to be tough regardless of unforeseen problems. Production is down 7% which would indicate inventory is climbing. That's normal with sales dropping but has to be addressed quickly if deliveries continue to be depressed.
The Cybertruck would have been helpful at this time to increase deliveries but that has been plagued with issues that have held it up for years. That and the flatness of the electric car market in 2024 are making the year the most challenging for the company so far.
Data source: Tesla.
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