Tesla to Face Sales and Delivery Declines Amid Tough Market Conditions

Tesla’s (NASDAQ: TSLA) Q1 2024 unit deliveries and automotive sales are expected to drop significantly, based on Visible Alpha consensus estimates. Analysts have been revising their projections for the electric vehicle manufacturer, particularly since the start of the year, reflecting a series of setbacks Tesla has encountered, including subdued demand for its electric vehicles within an intensely competitive market. Despite the implementation of price reductions, analysts expect Q1 2024 deliveries for Tesla to decline sharply to 408K units, while inventory piles up. Consequently, automotive sales are projected to decrease by -10% year over year and -18% sequentially, amounting to $16.9 billion in the first quarter of the year.

While both deliveries and revenues are estimated to pick back up in the upcoming quarters, analysts expect a moderation in growth for the full year. Deliveries are expected to grow by +6% to 1.91 million units (compared to +38% YoY growth in 2023), and sales are projected to be up +1% to $79.7 billion (compared to +17% YoY growth in 2023).

In an effort to streamline the company, Tesla has planned to lay off over 10% of its workforce. The company is scheduled to report its first-quarter 2024 results on Tuesday, April 23.