Key Takeaways
1. Tesla experienced a 4% reduction in vehicle production in 2024, the first decline since 2020, with a notable drop in models Y and 3.
2. Total vehicle production for the year was 1.77 million, down from 1.84 million in 2023, despite a 33% increase in production of other models.
3. Deliveries fell by 1%, largely due to a 2% decrease in models Y and 3, but were partially offset by a 33% increase in other model deliveries.
4. Financial results showed a 1% rise in total revenues, despite a 6% decline in automotive revenues, aided by growth in energy generation and storage.
5. Tesla is planning to boost truck production in late 2025, launching new budget-friendly vehicles, and has started production at its Shanghai megafactory for large energy storage batteries.
In 2024, Tesla saw a 4% reduction in vehicle production, largely due to a 5% fall in the output of models Y and 3, as per the financial documents. This was the first decrease in production since 2020. On the other hand, production of other models rose significantly, by 33% throughout the year. Tesla managed to produce 1.77 million vehicles, a decline from 1.84 million in 2023.
Deliveries and Trends
Alongside this production dip, deliveries also fell by 1%, with the largest drop occurring in models Y and 3, which saw a decrease of 2%. However, these declines were somewhat balanced out by the increased production and delivery of other models, which grew by 33% and 24%, respectively. Still, their overall effect on total numbers was not as significant as that of models Y and 3.
Financial Overview
The financial outcomes revealed a 1% rise in total revenues, even with a 6% decrease in automotive revenues. The reports indicate that growth in energy generation and storage, along with other services, helped to mitigate the impact on the main segment.
Tesla noted that the lowered selling prices for its models S, 3, X, and Y had a negative effect on revenues, particularly in the last quarter. Likewise, higher operating costs due to AI initiatives and R&D projects have influenced the company’s profitability.
Future Plans
Nonetheless, the company is advancing in the development of semifactories in the US, aiming to boost truck production starting in late 2025. For the upcoming year, Tesla anticipates launching new vehicles, including some more budget-friendly options.
As the energy generation and storage sector expands, Tesla has commenced production at its Shanghai megafactory, which has been under construction since May 2024. This facility is expected to manufacture around 10,000 units of Megapack, a very large commercial energy storage battery capable of storing over 3.9 megawatt-hours (MWh) of energy.
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