Tesla deliveries continue to fall in 2024

While tech firms within the 'Magnificent 7' stocks are witnessing a great upswing, Tesla has experienced an equally historic downfall. The company has lost a quarter of its value in 2024 and is the worst-performing stock on the S&P 500.

Tesla's June-quarter deliveries fell 3.7 per cent, according to Reuters. This marks the first time Tesla has posted two straight quarters of decline. Tesla has faced multiple issues, along with troubles in China and slowing demand. Consumers are reportedly shifting to cheaper hybrid options, which has left Tesla's expensive inventory in the dust. To compete in this aggressive market, Tesla has tried price cuts and incentives. This has further hurt the company's balance sheets.

Tesla's CEO, Elon Musk, recently got his record $56 billion pay package approved by his shareholders. Musk had earlier announced plans to focus on robotaxis, which got investors concerned over the company's future prospects and the imperfection of autonomous technology.

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Analysts are now expecting Tesla to post its first annual sales drop this year. Earlier, in the January-March quarter, deliveries dropped by the most in nearly four years. Sales are in decline across geographies, including in Europe, where sales fell 36 per cent in May.

Similarly in China, Tesla has been struggling to hold ground amid stiff competition from domestic EV makers. Elon Musk recently visited the country to improve the outlook in the largest car market in the world. Despite gaining some approvals, Musk's visit did not improve sales. Tesla's cost-cutting strategy to gain market share is surely a major shift for a brand known for its 'premium-ness'.

Tesla expects to unveil robotaxis on August 8 as it seeks to introduce its 'Full Self-Driving' software.