Tesla Reports Decline in 2024 Auto Sales

AFP/APP

New York: Tesla reported a decline in full-year auto deliveries for 2024, falling short of company forecasts and highlighting intensified competition in key markets such as China.

The electric vehicle (EV) manufacturer, led by Elon Musk, announced 495,570 fourth-quarter deliveries, bringing the total for 2024 to just under 1.8 million vehicles. This marks a 1.1 percent decrease from 2023, despite Tesla’s earlier projection of “slight growth” in deliveries for the year.

A Mixed Year for Tesla

The results cap a turbulent year for Tesla. While the company reported increased fourth-quarter sales compared to the same period in 2023, it wasn’t sufficient to offset the full-year decline.

Tesla attributed the slower growth to its position “between two major growth waves,” with expectations for a boost in sales fueled by advancements in autonomy and the introduction of new vehicle models in the near future.

In 2024, Tesla increased production of its highly anticipated Cybertruck but faced mounting pressure to deliver additional new models. A much-publicized October launch event in Los Angeles for Tesla’s autonomous robotaxi vehicles received underwhelming reviews.

Tesla has faced growing competition from established automakers and new players, particularly in China, where EV giant BYD has emerged as a formidable rival. Earlier Thursday, BYD reported a significant surge in 2024 sales, underscoring its competitive edge in the global EV market.

Market Reaction

Shares of Tesla fell 4.3 percent in early trading following the announcement. Despite the dip, the stock remains up more than 55 percent since the November U.S. elections.

Tesla’s challenges in 2024 reflect a dynamic and increasingly competitive EV landscape, as the company strives to maintain its leadership position while navigating market pressures and evolving consumer demands.