Elon Musk is doing some expectation-setting after Tesla fell short of Wall Street’s delivery targets for the first quarter of 2024. Sees a sunny outlook thanks to strong products, improved battery production, and clever marketing tactics.
The stats don’t lie – Tesla had a rough start to 2024 from a deliveries perspective. The company produced 433,371 vehicles in Q1 but only managed to deliver 386,783 to customers.
Tesla cited “frictional” roadblocks like an 2023 new Model 3 production ramp, factory shutdowns related to the Red Sea conflict and an arson attack at Giga Berlin. But the bigger obstacle?
Despite the Q1 whiff, remains bullish about Tesla’s trajectory, “best vehicle lineup of anyone,” suggesting the company’s EVs should sell themselves via strong word-of-mouth once macro pressures subside.
Growth in Tesla’s energy storage business, which deployed a record 4,053 megawatt-hours of Megapacks in Q1 – up 26.6% from the prior quarter. With its new Shanghai factory coming online, Tesla is set to double production capacity on that booming product line.
Leaning Into Advertising? Promoting That FSD Free Trial
In a somewhat surprising strategic shift, Musk even advocated for increased advertising at Tesla to boost awareness of its “low pricing, ease of use, vast and reliable charging network.”
“If the ads are fun [and] informative… this helps Tesla’s mission,” Elon argued, admitting that the EV leader has room to grow brand recognition around its product strengths.
Tesla’s unprecedented free trial of its “Supervised” Full Self-Driving to be a particularly powerful marketing tool.
With disappointing delivery figures, Musk is feeling pressure to rewrite the brand’s narrative and reignite demand.