Tesla failed to stop the recession: sales fell for the second consecutive quarter

Tesla continued to see sales decline in the second quarter of 2024, delivering 384,122 vehicles. That’s down 13.5% from the same period last year and only marginally better than the first quarter, which was the company’s worst quarter in two years. This dynamic jeopardizes Tesla’s annual results, which could record a sales decline for the second year in a row – contrary to previous claims of a possible 50% year-over-year increase in deliveries.

The situation is exacerbated by the company’s internal problems. While the first-quarter sales decline was attributed to production line shutdowns to prepare for the Model Y refresh, there was no clear reason for the downturn in the second quarter. However, sources say that at the end of May, some employees involved in Model Y and Cybertruck production were forced to temporarily stop work.

Sources say that the company’s internal problems have been exacerbated by the company’s internal problems.

There has been a staff reshuffle against this backdrop, with Ilon Musk firing vice president Omed Afshar, who was responsible for sales in key regions. Musk himself, having reduced his involvement in the Trump administration, has promised to pay more attention to Tesla’s business. The company is trying to turn the situation around – it continues to reduce prices, offers favorable credit terms, updates the model range. Particular hopes are pinned on the announced “more affordable” versions of Model 3 and Model Y, but the specific timing of their release remains unclear. At the same time, the company has abandoned plans to release a budget electric car for 25,000 dollars, focusing on the development of robotaxi Cybercab.

The industry context is also challenging: even companies as successful in the electric car market as Hyundai and Kia have seen sales decline. The exception was General Motors, which managed to grow volumes thanks to a revamped model lineup. Tesla’s second-quarter financial results will be available July 23, but it’s already clear that the company has some serious work to do to get back to its previous growth rate.

The story Tesla fails to stem recession: sales fall for second straight quarter was first published on ITZine.ru.