Tesla’s annual vehicle sales fell for the first time in 2024 as the company faced industry-wide headwinds and increased competition.
Elon Musk’s electric automaker announced on Thursday that it sold approximately 1.79 million vehicles in 2024, falling just short of the previous year’s 1.8 million and capping off a difficult year for electric vehicles in general.
In the fourth quarter, Tesla delivered 495,570 vehicles to customers. Bloomberg polled analysts, who expected around 510,000. During early trading, shares fell by about 6%.
Despite falling short of analysts’ expectations, Tesla’s fourth-quarter deliveries rose by more than 11,000 vehicles compared to the same period in 2023.
However, Tesla and its competitors may face even greater sales challenges. President-elect Donald Trump has pledged to eliminate consumer tax credits, which effectively reduce vehicle prices by up to $7,500. Sticker prices remain stubbornly high when compared to traditional gasoline-powered options.
Many consumers have opted for hybrids over pure EVs. Hybrids can provide many of the gas savings and environmental benefits for a lower cost and without requiring any lifestyle changes.
Ominous market signals haven’t deterred Musk, who has repeatedly touted autonomy as Tesla’s latest competitive advantage — and claimed that buying any other car would be a financial mistake.
Tesla has promised an autonomous “Cybercab” and a more affordable car model in the coming year.
