Tesla's Q2 Sales Drop 4.8% Despite Aggressive Promotions

Tesla Q2 2024 sales see a 4.8% drop, experts cite EV-maker’s aggressive sales promotions and ageing line-up as key factors.

Tesla reported a 4.8% decline in second quarter (Q2) sales, totalling 443,956 vehicles. This marks the second consecutive quarterly drop despite aggressive sales promotions, including subsidised interest rates in the American and other markets. 

The company's production also saw a significant dip, falling 14% year-over-year to 410,831 vehicles, as announced on July 2. Despite the decline, the sales numbers exceeded Wall Street’s expectations. Dan Ives, an analyst at Wedbush and a known Tesla supporter, praised the company's performance. 

He described the second-quarter results as a significant achievement for Tesla and CEO Elon Musk, given the challenging global market for electric vehicles.  "This was a huge comeback performance from Tesla and Musk with the Street expecting a clear miss this quarter with EV demand still choppy globally," Ives stated in a research note on 2 July. 

He also highlighted a "mini rebound" in China and stabilised pricing as key factors that helped Tesla navigate the quarter's difficulties. While Tesla does not provide regional sales breakdowns, Cox Automotive estimated a 15% drop in deliveries across America in Q2, bringing the total to 175,262. 

Furthermore, S&P Global Mobility's U.S. registration data for Jan to April showed an 11% year-over-year decline to 183,278. Jessica Caldwell, head of insights at Edmunds, noted that Tesla's ageing vehicle lineup and frequent sales incentives have not been enough to boost growth in its American home market. 

"The decline in Tesla deliveries for Q2 doesn't come as a big shock," Caldwell commented. She pointed out that the company's price cuts and incentives have become less effective due to their frequent use. KR

Source: Automotive News Europe