Tesla investors are pushing the sell button as Elon Musk’s company produced and sold fewer cars than expected last quarter. The Elon Musk-owner EV maker delivered 433,371 vehicles last quarter, well below projections of 449,080, a 12.5% decline on the same quarter last year.
Tesla reported that it produced 412,376 Model 3/Y cars and delivered 369,783. The company produced 20,995 of its other models and delivered 17,027.
Tesla let it be known in a press statement that there are multiple explanations for the disappointing numbers.
An update to the Model 3 production line at the Fremont, California, plant delayed production.
On top of that, there was the sabotage at the German gigafactory in Grünheide. The power was out after a fire in a high-voltage pylon supplying electricity to the plant. It was shut down for a week as a result. That shutdown came just weeks after the German plant reopened. Operations were at a standstill at the time because of ongoing attacks by Houthi militias on suppliers who use the Red Sea to transport goods.
Furthermore, Western car manufacturers are increasingly facing competition from China. Those companies are also receiving a lot of state aid, allowing them to keep their prices down.
In addition, the tightening money policies of central banks are making it harder for many people to finance the purchase of a new car with credit.
However Musk has nevertheless taken measures to boost sales figures.
For example, the software that allows Tesla’s cars to drive (partially) autonomously is in full swing. For example, American drivers can test out the FSD (full driving system) system free of charge for a month.
That system allows a Tesla to change lanes, follow navigation routes, avoid obstacles and take turns by itself. Tesla stresses that FSD “is not fully autonomous and users must remain alert”.
Tesla’s fortunes reflect a declining interest in electric vehicles in the Irish market. According to figures from Society of the Irish Motor Industry (SIMI) despite a 18.3% increase in new car registrations in the year-to-date compared to 2023 sales of electric vehicles have experiences only increased 1.4% increase.
“This slowing down in EV sales is not unique to Ireland and is reflective of other new car markets,” said SIMI director general Brian Cooke. “It is typical of the life cycle in the adaption of any new technology, where there is a gap between early adapters and the early majority consumers. This is happening at a time when we need to accelerate the growth in EV sales.
“The electrification of the car fleet is strategically important. It will cut transport emissions and shape the future of the Motor Industry. To speed up the move to EVs in the wider motoring public, the Industry and government must keep working together. For the Industry, this means the rolling out of more EV models. For government, it means extending incentives and investing in the national charging infrastructure.”
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