Tesla: Production and deliveries fall in 2024 for the first time in years

In 2024, Tesla’s vehicle production declined by 4%, primarily due to a 5% decrease in the production of models Y and 3, as indicated in the financial reports. This marked the first drop in manufacturing since 2020. However, the production of other models offset this decline, rising by 33% over the year. Tesla produced 1.77 million units during the year, down from 1.84 million in 2023.

In line with this trend, deliveries dropped by 1%, with the most significant decline seen in models Y and 3 (-2%). Nonetheless, these decreases were partly balanced by increases in the production and delivery of other models, which grew by 33% and 24%, respectively, though their impact on the totals was less substantial than that of models Y and 3.

The financial results showed a 1% increase in the total revenues, despite a 6% drop in automotive revenues. The statements show that energy generation and storage, and other services growth could compensate for this result in the main segment. 

Tesla explained that the reduced selling price for its vehicles S,3, X, and Y impacted its revenues, especially in the fourth quarter. Similarly, the increased operating expenses driven by AI and other R&D projects affected the company’s profitability.

However, the company is working in the completion of semifactories in the US, to ramp up truck production beginning in late 2025. In the pipeline for the year, Tesla expects to release new vehicles, including more affordable models.  

As the energy generation and storage segment grows, the company began production in the Shanghai megafactory, under construction since May 2024. This facility will produce around 10,000 units of Megapack, an ultra-large commercial energy storage battery, that can store over 3.9 megawatts-hour (MWh) of energy.