Electric vehicle manufacturer Tesla is anticipated to announce decreased quarterly deliveries when it releases earnings Thursday morning, as the company faces cooling consumer demand and growing competition in major markets worldwide.
Market analysts predict the company delivered approximately 368,900 vehicles during the first three months of 2024, representing an 11.8% decline from the previous quarter, though still showing 9.6% growth compared to the same period last year when controversy surrounding CEO Elon Musk’s political statements impacted sales.
Data compiled by Visible Alpha shows industry experts forecasting deliveries around this figure, while a separate survey of 23 analysts puts the average estimate at 365,645 units for the January through March timeframe.
Several factors are contributing to the challenging market conditions Tesla faces. Increased competition from rival manufacturers in European and Chinese markets is putting pressure on sales, while the elimination of the $7,500 federal tax incentive for electric vehicle purchases in the United States last September has dampened consumer interest.
Despite these near-term headwinds, Wall Street analysts still project moderate growth for Tesla throughout 2024, though market sentiment has become notably more cautious in recent months. Some industry watchers are now predicting potential declines rather than the steady growth previously expected.
Looking ahead, analysts project Tesla will deliver approximately 1.7 million vehicles this year, with expectations rising to 1.84 million units by 2027, according to Visible Alpha research data.
The company has been diversifying its business strategy beyond traditional electric vehicles, investing heavily in solar energy systems, humanoid robotics technology, and self-driving taxi services as potential future revenue sources.
