Tesla Model 3 sales up last month despite electric vehicle sales slowdown (2024)

FAQs

Are Teslas losing popularity? ›

The situation in the United States is similar. Tesla's sales volume dropped from 324,900 units in the first half of 2023 to 299,200 units this year. Meanwhile, overall BEV sales increased by 7.6 percent in the same period. As a result, Tesla's share dropped from 59.8 percent in 2023 to 51.2 percent in 2024.

After years of rapid expansion, electric vehicles sales growth in California trended down in the middle of last year and now has turned negative: 101,443 all-electric cars were registered in the state in 2024's second quarter, down from 102,730 in the second quarter of 2023, a drop of 1.2%.

Elon Musk's electric car-maker delivered nearly 444,000 vehicles in the three months ended 30 June, up more than 14% from the prior quarter. That was far more than most analysts had expected - though still down nearly 5% from the same period in 2023.

Cox Automotive said in a preview of its Q2 2024 electric auto sales report that Tesla's sales in the second quarter of 2024 fell to 49.7 percent of all US EV sales. That's a decline of 6.3 percent for Tesla sales, Cox said, while overall EV sales rose 11.3 percent compared to a year ago.

While Tesla's share of U.S. EV sales has fallen, the company's stock price has rebounded after starting the year as the worst-performing stock in the S&P 500. Tesla shares are up just over 7% year to date, but are still down about 2% year over year.

Tesla also sold over 33,000 more vehicles during the second quarter than it produced, which should reduce the company's inventory on hand at its stores. Tesla's sales decline comes as competition is increasing from legacy and startup automakers, which are trying to nibble away at the company's market share.

Cox Automotive predicts EVs will make up 10% of all new vehicle sales by the end of 2024, up from 7.6% last year. “We remain bullish on electric vehicle sales in the long term,” Valdez-Streaty said.

Auto market analysts say California has largely exhausted its demand among early adopters and is moving into a new phase of market development where it needs to win over everyday consumers in order to meet its target of transitioning to all zero-emission new-car sales by 2035.

According to Experian Automotive, the Tesla Model Y was the best-selling electric car in the first quarter of 2024, making up 39.3% of new EVs sold. The Model 3 was second with 11.9%.

Tesla Model 3

It is the best-selling electric vehicle in the world, with sales of over 1.2 million vehicles. The Model 3 has a range of up to 358 miles and can go from 0 to 60 mph in 3.1 seconds.

Is Tesla struggling to sell cars? ›

Tesla sales fell for the second straight quarter. It marks the the first time in the company's history that sales declined from the previous year for two quarters in a row. Tesla's sales for the quarter came in at nearly 444,000 cars, down about 5% from a year ago.

Tesla (TSLA) soared 12.1% after Elon Musk said the electric vehicle maker would accelerate its timeline to develop new models, including a long-promised low-cost option. Hasbro (HAS) jumped 11.9% after beating first-quarter earnings estimates.

Tesla saw its U.S. sales decline by 6.3% over a three-month period. Strong EV sales by General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), Hyundai and Kia lifted total second-quarter sales in the U.S. to a record estimated 330,463 units sold.

Tesla Model 3

The Tesla Model 3 has the best value retention at a five-year depreciation rate of 42.9%. That outpaces the average for the segment by 6.2 percentage points, but still lags the industry average of 38.8%.

Tesla stock is set for big upside in the second half of 2024, Wedbush predicted. That's because the carmaker is finally a turnaround in weak demand from China, Dan Ives said. The carmaker could make a comeback at its Robotaxi event in August, Ives predicted.

Price remains a major obstacles, as does charging and, of course, politics. Musk warned of a slowdown, but the steep decline still took a lot of people by surprise. (Ives called it a “disaster.”) Tesla's sales dropped 13 percent in the first quarter, compared to Q1 in 2023.

While traditional automakers have responded by utilizing a lot of discounts and rebates on their electric models, Tesla has slashed the sticker prices to compete. These price drops, combined with lower consumer demand, have had a cascade effect on the used market causing pre-owned electric model values to plummet.

Quarterly Tesla vehicle deliveries

Tesla deliveries slipped again last quarter compared to a year ago amid growing competition and uneven demand for EVs. Why it matters: The company still holds the scepter as the top-seller of EVs in the world, but its grip is loosening.

Morningstar analyst Seth Goldstein attributed the large stock drop to Tesla giving little new specific information on vehicles or tangible financial targets. “Maybe some investors are saying 'you know, we didn't get more details from management,'” Goldstein said.