Friday, December 20, 2024

Tesla's 2024 deliveries growth might hinge on Musk's unorthodox Cybertruck

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FEATURED ARTICLE

Tesla's 2024 deliveries growth might hinge on Musk's unorthodox Cybertruck

 Tesla is aiming to post slight growth in 2024 deliveries over last year with generous incentives across its EVs – but a lot depends on the success of the new Cybertruck pickup, which is showing signs of weakness, analysts said.

After years of rapid growth, Tesla delivered a record 1.81 million vehicles in 2023. But rising competition and an aging lineup have hit the electric-vehicle market leader hard as consumers, faced with high borrowing costs, choose less expensive hybrids over battery-powered vehicles.

CEO Elon Musk is betting on plans for a robotaxi business to turn Tesla’s fortunes as his ally, President-elect Donald Trump, is expected to clear regulatory hurdles. But analysts say the technology is still years away, and Musk’s target of 20-30% sales growth next year hinges on his promise of a cheaper version of current cars and success of the Cybertruck.

The truck’s higher-than-expected price tag and a design that has been called polarizing – a trapezoidal, stainless-steel exterior meant to stand out in a fiercely competitive market – are keeping buyers at bay, said Sam Fiorani, vice president at research firm AutoForecast Solutions. 

“Unfortunately, buyers of full-size trucks are a rather conservative crowd,” he said. “They’re just not hitting as strong as early expectations.” 

Tesla slashed prices of its vehicles last year to stimulate demand, sparking a price war across the industry.

This year, the company has focused on offering lucrative incentives, including low-cost financing deals on its Model 3 sedans and Model Y SUVs as well as lower lease prices.

Tesla also offered three months of free fast-charging and Full Self-Driving, its advanced driver assistance software, for all new orders that deliver by Dec. 31.

Still, data from S&P Global Mobility showed Tesla’s U.S. registrations as of end-October fell to about 500,000 vehicles, down about 7% from the year-earlier period.  The decline was partly due to a fall of 32% in Model 3 registrations, and to a 24% drop in Model S luxury sedans.

Tesla does not break out sales of Cybertruck – but the S&P data showed U.S. registrations of the pickup falling to 4,335 in September and 4,039 in October, from 5,428 in August. Through October, the total was 31,451. Analysts at Bernstein expect 50,000 of them by the end of the year.

“The Cybertruck is not doing enough to 

 .... Read More >>

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