Tesla's quarterly deliveries are expected to take a hit as the loss of U.S. tax credits and intense global competition erode demand, despite the introduction of more affordable vehicle models. This trend follows a similar decline in the first half of the year, when CEO Elon Musk faced backlash for his political remarks. However, the third quarter saw a surge in sales as buyers rushed to secure tax credits before their expiration. Despite these fluctuations, Tesla is projected to report its second consecutive annual drop in deliveries, with a steeper decline this year. The company's sales are expected to recover in the coming year, as the newly launched Standard versions of the Model Y SUV and Model 3 compact sedan, priced around $5,000 below previous base models, help Tesla maintain its market share in Europe and Asia, where Chinese EVs are gaining popularity. The company's focus on expanding robotaxis, humanoid robots, and self-driving technology, while crucial for its future, still relies heavily on EV sales for current revenue. Analysts predict Tesla will deliver 432,810 vehicles in the December quarter, a 13% year-over-year drop, and a steeper 15% decline to 422,850 vehicles according to another consensus. For the full year, Tesla's deliveries are projected to be 1.65 million vehicles, a 7.8% decrease, marking the second consecutive annual decline. This downturn is expected to be driven primarily by sales in North America and Europe. As Tesla navigates these challenges, Musk's recent court victory to reclaim a Tesla pay package and the approval of a new compensation package worth $878 billion over the next decade, highlight his continued focus on the company's long-term goals, including the ambitious target of delivering 20 million vehicles in total.
