Tesla's Quarterly Report: Production and Deliveries Dip

Tesla's Quarterly Report: Production and Deliveries Dip

Hiroki Tanaka
2 min read

Tesla's Q2 Report Reflects Decline in Production and Market Share

Tesla recently released its Q2 report, revealing a decrease in both production and deliveries. The company manufactured 410,831 vehicles, marking a 14% drop compared to the previous year, and delivered 443,956, representing a 4.76% decline. This declining trend has been persistent throughout the year, marking Tesla's first year-over-year sales drop since 2020. The company attributes this downturn to increased competition in the electric vehicle (EV) market and operational challenges, such as the production ramp-up for the new Model 3 and supply chain disruptions in Berlin.

Furthermore, Tesla's market share has dwindled to 50%, a significant decrease from its 80% share in 2020, indicating a shift in the industry landscape. The decrease in market share can be linked to various factors, including rising competition, product gaps, and controversies surrounding CEO Elon Musk.

It's worth noting that Tesla's sales heavily rely on its Model 3 and Model Y, with the Cybertruck facing setbacks due to recalls. Despite facing challenges in Europe, the company anticipates potential growth in China through new incentives.

Key Takeaways

  • Tesla's Q2 2024 production dropped 14% year-over-year to 410,831 vehicles.
  • Customer deliveries fell 4.76% to 443,956 vehicles in the same period.
  • Tesla's market share decreased to 50%, down from 80% in 2020.
  • The company faces challenges with the refreshed Model 3 and supply chain issues.
  • Musk's online antics and gaps in Tesla's vehicle lineup impact sales.


Tesla's Q2 downturn, linked to increased EV competition and production issues, impacts investors and suppliers. Market share erosion, from 80% to 50%, signals broader industry shifts. Short-term, Tesla faces financial scrutiny; long-term, strategic pivots like the robotaxi could redefine its market position.

Did You Know?

  • Robotaxi:
    • A robotaxi refers to a self-driving taxi service, where vehicles operate without a human driver. Tesla's robotaxi is expected to leverage advanced AI and robotics technologies to navigate and provide transportation services autonomously. This initiative is part of Tesla's broader strategy to integrate cutting-edge technology into its automotive offerings, potentially transforming urban mobility and the taxi industry.
  • Supply Chain Snags:
    • Supply chain snags refer to disruptions or delays in the supply chain network that affect the production and delivery of goods. In Tesla's case, these issues can stem from various factors such as component shortages, logistical challenges, or manufacturing delays. Supply chain snags can significantly impact production volumes and delivery timelines, as seen with the challenges faced during the ramp-up of the new Model 3 and in Tesla's Berlin factory.
  • Market Share:
    • Market share in the context of the automotive industry refers to the percentage of total sales in the market that a particular company holds. For Tesla, a decline in market share from 80% to 50% indicates a significant shift where competitors are gaining ground in the electric vehicle (EV) market. This change can be attributed to increased competition from other automakers, who are expanding their EV offerings and capturing a larger portion of the market.

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