Tesla shares insights on its production rate… and consequently sales.

This Friday, March 29, 2024, Tesla celebrated its 6 millionth car produced in its history. But when was the 5 millionth?

All happy communications are currently needed for Tesla. Because the bad ones are numerous, too numerous. The latest, on the same day as this Friday, March 29, 2024, concerns the estimates of car sales at the end of the first quarter of 2024 versus 2023.

And it’s a hangover for Tesla: analysts estimate this figure down to around 420,000 units sold, compared to 485,000 in the same period of 2023. As a result: another -2.25% adjustment of Tesla’s stock price on the New York Stock Exchange. In 6 months, the stock has plummeted by 30.13%. Elon Musk has somewhat lost his smile lately.

6 Million Cars Sold

Earlier in March 2024, Tesla announced the voluntary slowdown of its Shanghai factory due to insufficient demand. In Europe, sabotage by environmental activists interrupted the operations of the Berlin factory for 10 days, resulting in millions of dollars in losses.

Tesla also decided to raise the prices of some of its models, including the superstar Model Y in Europe. An average increase of 2,000 euros to respond to the demands of financial analysts who require better operating margins from Tesla, which have been in free fall for several months.

So, what does the celebration of the 6 millionth Tesla vehicle produced mean? It’s an interesting milestone. To grasp its significance, it might be worth rewinding time.

The 5 millionth vehicle was produced on September 18, 2023, or 193 days (6 months and 11 days) earlier. The 4 millionth was produced on March 3, 2023, or 392 days (1 year and 26 days) compared to the 6 millionth, but also 199 days (6 months and 15 days) compared to the previous million. In simple terms, Tesla has produced less than 2 million cars in 1 year, but the consistency remains.

A Broken Growth

On August 5, 2022, Tesla produced its 3 millionth car, which was 210 days (6 months and 29 days) before the 4 millionth.

In conclusion, one can assert that there is stagnation in Tesla’s production, with its million-car production thresholds consistently occurring about 6 months and a few days apart. Growth is flat in a rapidly expanding electric vehicle market. And it’s this broken dynamic that worries the financial markets.

The urgency for a 25,000 euro car is now a top priority for Tesla, at a time when competition is becoming increasingly fierce, relevant… and affordable.

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