Tesla sales decline year-over-year for first time in a decade
What's the story
Tesla, the top electric vehicle (EV) maker in the US, has witnessed a year-on-year drop in its production and delivery numbers for 2024.
The company produced some 1.77 million cars this year, a drop of some 4% from last year.
It also delivered nearly 1.79 million vehicles, roughly 1% lower than 2023, marking the first annual decline since 2015.
Quarterly performance
Record Q4 deliveries and energy storage deployment
Despite the annual decline, Tesla had a "record" fourth quarter for deliveries with nearly half a million vehicles reaching customers.
In Q4 2024, the company delivered a whopping 495,570 vehicles to customers during the period. It also deployed an impressive 11 GWh of energy storage products.
Notably, most of the vehicles produced during this quarter were Model 3s and Ys, further proving their popularity among consumers.
Annual comparison
Tesla's annual performance falls short of 2023 figures
Despite the record-breaking fourth quarter, Tesla's annual performance for 2024 still fell short of its 2023 figures.
Earlier in the year, CEO Elon Musk had warned about potential challenges due to increased competition and waning demand for Tesla's older vehicle models.
Even the relative success of the Cybertruck, which began deliveries late last year, wasn't enough to boost Tesla's overall annual performance.
Market reaction
Tesla's Q4 performance misses Wall Street's expectations
Despite setting records for deliveries and energy deployment in Q4, Tesla fell short of Wall Street's expectations.
Wedbush's Dan Ives had predicted 504,800 vehicles delivered, a number Tesla didn't meet.
The news caused Tesla's stock price to drop by roughly 5%, reflecting how investors were disappointed with the company's performance.
Political impact
Uncertainty looms over Tesla's future under Trump's presidency
The future of Tesla still looks uncertain as Donald Trump returns to the presidency.
There are speculations that the incoming president may revoke several incentives that have made Tesla cars more affordable, including a $7,500 tax credit on new EVs.
This potential policy change could further affect Tesla's sales and market position in the years to come.
Forward outlook
Tesla's future plans and market challenges
Musk has announced plans for a more affordable Tesla model in 2025 and a fully autonomous Cybercab for 2026. However, these projects face significant hurdles.
Not to mention, the surge in domestic EV production in China continues to pressure US manufacturers like Tesla, which is losing market share to BYD and other major players in its largest and most crucial market.