Tesla’s First Annual Sales Decline in Over a Decade
Tesla Inc. reported a significant drop in vehicle sales for 2024, marking its first annual decline in more than a decade. The company sold 1.79 million vehicles, falling short of its 2023 figures and below analysts’ expectations. Despite a record-breaking fourth quarter of 495,570 deliveries, Tesla missed its full-year growth target.
Stock Performance and Consumer Demand Challenges
Tesla’s shares fell 7.6% following the announcement, reflecting growing investor concerns. Although the stock rose 63% in 2024, weaker consumer demand for electric vehicles (EVs) and anticipated reductions in EV incentives under President-elect Donald Trump pose significant challenges.
Setbacks and Workforce Reductions in 2024
The EV maker faced multiple hurdles throughout the year, including an arson attack at its Berlin factory and a 10% workforce reduction in April. Global EV sales slowed industry-wide, further compounding Tesla’s difficulties.
2025 Growth Projections and Model 2.5 Expectations
Elon Musk has forecasted 20% to 30% growth for 2025, fueled by a new, more affordable vehicle expected in the first half of the year. However, analysts remain skeptical, particularly if Trump’s administration rolls back EV tax credits.
Competition Intensifies in Global Markets
Chinese automaker BYD Co. sold 4.25 million EVs and plug-in hybrids in 2024, narrowing the gap with Tesla. In China, Tesla’s Shanghai factory delivered 916,660 cars, a 3% year-on-year decline.
Controversy Surrounding Tesla’s Cybertruck
Tesla’s Cybertruck faced scrutiny after a deadly explosion outside a Trump hotel in Las Vegas. While the company attributed the incident to an external factor, the FBI is investigating potential links to other attacks.
Tesla’s Energy Business Achieves New Heights
Despite challenges in its vehicle segment, Tesla’s energy division set an annual record, deploying 31.4 gigawatt hours in 2024.
What Lies Ahead for Tesla in 2025?
With a shifting regulatory environment, intensifying competition, and new product launches, Tesla’s trajectory remains uncertain. Can the EV leader overcome its 2024 hurdles to achieve Musk’s ambitious growth targets?