Gary Zhou 
- 📉 Tesla anticipates a notably lower growth rate in 2024 compared to 2023.
- 🚗 The lower growth is attributed to being “between two major growth waves” and the development of Tesla’s next-generation platform.
- 🌐 Tesla aims for a compound annual growth rate (CAGR) of 50%, planning to grow production as quickly as possible.
- 🚀 The next-generation platform is still in development and may impact near-term growth goals.
- 🏭 Tesla recognizes two major growth waves: global expansion of the Model 3/Y platform and the upcoming one with the next-generation vehicle platform.
- ⚙️ The next-generation vehicle platform is expected to revolutionize manufacturing, with production planned at Gigafactory Texas.
- 🔄 After the Model 3 and Model Y platforms, Tesla looks to catalyze growth with a more affordable next-generation vehicle.
- 📅 Reports suggest Tesla is preparing for the production of the next-gen vehicle, reaching out to suppliers for a mid-2025 start.
In the ever-evolving landscape of electric vehicles, Tesla stands at the forefront, driving innovation and setting trends. The recent revelations from Tesla’s Q4 2023 Earnings Shareholder Deck have sparked discussions about the anticipated growth rate for 2024 compared to the preceding year. Let’s delve into the key factors shaping Tesla’s trajectory and what lies ahead.
Understanding the Anticipated Slowdown
Tesla’s projection of a notably lower growth rate in 2024 raises eyebrows, especially considering the remarkable strides made in 2023. The primary explanation provided is that the company finds itself “between two major growth waves.” This transition phase is closely tied to the ongoing development of Tesla’s next-generation platform.
The Quest for a 50% CAGR
Tesla, known for its ambitious goals, has set a target of achieving a Compound Annual Growth Rate (CAGR) of 50%. This reflects the company’s commitment to expanding production rapidly, aligning with the ambitious CAGR target articulated in early 2021.
- The 2023 Production Benchmark
- Tesla’s production in 2023 reached 1.8 million units, setting the stage for aiming at approximately 2.7 million cars in 2024.
- The company experienced a commendable 35% growth rate in production from 2022 to 2023.
- The Role of Next-Generation Platform
- Tesla’s next-generation platform, still in development, emerges as a critical factor influencing growth rates.
- Despite the potential benefits, there are concerns about the platform impacting short-term growth goals.
Navigating Growth Waves
Tesla identifies two major growth waves that have shaped its journey:
- First Growth Wave: Model 3/Y Expansion
- Global expansion of the Model 3/Y platform marked the initiation of the first significant growth wave.
- Upcoming Growth Wave: Next-Gen Vehicle Platform
- The next-generation vehicle platform is poised to be the catalyst for the next wave of growth.
- Production is planned at Gigafactory Texas, promising a revolutionary approach to manufacturing.
The Pursuit of Affordability
Tesla’s growth strategy includes making electric vehicles more accessible. The company acknowledges a potential dip in growth rate in 2024 as it gears up to introduce a more affordable next-generation vehicle.
- Revamping the Electric Sedan
- Following the success of the Model 3 and Model Y platforms, Tesla has attempted to refresh the all-electric sedan, with rumors suggesting a similar update for the Model Y.
- Preparing for Next-Gen Production
- Reports indicate that Tesla is actively reaching out to suppliers, laying the groundwork for the production of the next-generation vehicle starting in mid-2025.
In Conclusion
As Tesla navigates the delicate balance between past achievements and future innovations, the company’s strategic decisions and growth projections offer a glimpse into the dynamic EV landscape. The next-generation platform and the pursuit of affordability present both challenges and opportunities. The electric vehicle enthusiasts and industry observers eagerly await how Tesla’s narrative will unfold in the coming years.
