Tesla published their Q4 2023 earnings report today, and within it indicated a potential slowdown in its growth rate for 2024. According to the company, they now find themselves in a transitional phase, positioned between two major growth spurts.
Tesla, which has seen rapid expansion in the electric vehicle (EV) market, has been experiencing significant growth waves. The first wave of growth was driven by the global expansion of the Model 3 and Model Y platform. This period marked a significant upsurge in Tesla’s market presence, with the Model Y becoming the first EV to claim the title of world’s best selling car.
The automaker expects the second wave to start with the global expansion of the next-generation vehicle platform, which promises to be another period of considerable growth. According to the latest rumours, the next-gen vehicle could launch in mid-2025.
However, 2024 will be the interim between these two phases. Tesla did not provide a specific guidance for 2024, expect to say it will see a relative slowdown in growth compared to 2023, which saw deliveries increase nearly 40% to 1.81 million.
Tesla’s focus in 2024 will be on the development and launch of the next-generation vehicle at Giga Texas. This shift in focus is expected to result in a lower vehicle volume growth rate compared to the substantial growth achieved in 2023. This transition period is a strategic investment in the company’s future, as Tesla gears up for its next big leap in the automotive industry, with Tesla saying the “platform will revolutionize how vehicles are manufactured.”
Tesla’s anticipated slower growth in 2024 should not be misconstrued as a setback. Rather, it is a strategic recalibration, a necessary pause that precedes the next major leap forward.
On the other hand, while the automotive sector of Tesla might see a slower growth pace, the company’s Energy Storage business is projected to outperform. Tesla anticipates that the growth rate in deployments and revenue from its Energy Storage business will surpass that of the Automotive business in 2024.
