Earlier this year, Tesla reported a drop in deliveries for the first quarter of 2024, the first time since the global pandemic began in 2020. Analysts warned that this could just be a wake-up call for the EV maker, beset by declining demand for orders. their product line replaced and large layoffs. However, shareholders overwhelmingly chose to praise CEO Elon Musk for this performance and voted in favor of a $56 billion pay package. Tomorrow, Tesla will report its second-quarter results, and Wall Street hopes it’s a step in the right direction.
In fact, the company will most likely experience a second quarter of declining deliveries, according to the media. The exact percentage of the year-on-year drop is not yet known: Bloomberg projects a drop of 5. 4%, while Reuters estimates a drop of 3. 7% and Barclays a staggering 11% drop. Regardless of the amount, if Tesla takes any further steps back this week, it will be the first consecutive quarter of delayed deliveries since 2012, when the Tesla Roadster went out of production.
Last July, Tesla said it delivered 466,000 of the 480,000 cars built in the quarter. FactSet estimates the number of cars with Quartz at 436,000, which is already a drop of 14,000 from what Wall Street expected just a week ago, and about 28,000 less. than previous estimates. Meanwhile, Tesla shares are down a full quarter in 2024.
The challenge is that there is no glimmer of hope that Musk can point to at this point, to reassure shareholders that relief is imminent. Of course, Tesla still has a lot of reservations about Cybertruck to make from its most ardent customers. But beyond that, the $25,000 “Model 2” is dead, the brand’s existing lineup too old in the face of highly competitive opportunities from “historic” automakers, as well as newcomers like Rivian, and public enthusiasm for electric cars in the market. Everything has stagnated.
Add to all of this the recall of Tesla’s latest and most anticipated product every month for the most pathetic and alarming reasons (while trying to speed up manufacturing, no less) and you have the ingredients of a bleak time for United States favorite. of electric vehicles. (We haven’t even discussed what’s happening in China yet. )Tesla is scheduled to announce its quarterly effects tomorrow, July 2.
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If he looted a rally level or destroyed the Mulsanne in the ’90s, Adam is probably obsessed with it. When he’s not around, he’s playing old block racing games or listening to Ridge Racer music in his hot hatch.
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