Technoking troubles.... Tesla stock has been having a rough go so far this year (it’s down 16% while the S&P 500’s at historic highs). Yesterday the drop worsened after Tesla reported disappointing revenue for Q4. Car sales grew just 1% from a year ago, despite strong delivery volumes: Tesla delivered a record 485K EVs last quarter, for an annual total of 1.8M — up 38% from the previous year. (FYI: the Model 3 and Model Y made up 98% of quarterly deliveries.)
New year, new potholes… Though last year’s deliveries were strong, 2024 could be tougher for Musk’s electric baby. Problems are piling up: several Model 3 vehicles lost eligibility for a federal tax credit of up to $7.5K, making them pricier for buyers. Meanwhile, competition’s intensifying: last quarter, Chinese carmaker BYD passed Tesla as the world’s #1 EV seller. Tesla has been slashing prices (most recently in China and Europe) to drum up demand — a move that’s cut into revenue and profits. Also:
Cold shoulder hurts: Hertz is selling 20K EVs (mostly Teslas) because of weakening demand and high repair costs. Some Model 3s are reselling for as low as $21K. Car-rental rival Sixt is also offloading Teslas.
Cyberstuck: There’s still hype around the Cybertruck, but Tesla’s first new model in years has had mixed reviews. Some drivers reported getting barely 200 miles/charge.
Tesla is a model… for the whole EV industry. Since its launch 20 years ago, Tesla has led the way in making EVs mainstream. Now many of its challenges and successes apply to its rivals too. While growth has slowed, the zoomed-out EV picture is one of rapid growth: US EV sales last year surged 50%. But as demand plateaus and speed bumps increase, the boom days may be passing, and future gains may be harder won.