Tesla’s fourth-quarter vehicle production and deliveries report revealed a significant drop in annual delivery numbers, marking the first time the company experienced an annual decline. Total deliveries for 2024 reached 1.789 million, down from 1.81 million in 2023.
The company reported 495,570 total deliveries in Q4 2024, with production totaling 459,445 vehicles. While this represents a respectable number compared to competitors like Hyundai and BYD, it falls short of analyst expectations, which ranged from 504,770 to 506,763 vehicles.
Tesla’s stock price plummeted by as much as 7% in trading on the day the report was released. The company faces increased competition in various markets, including Europe, where sales declined by approximately 14% year-over-year.
Despite being one of the pioneers in electric vehicles, Tesla now competes with domestic automakers like General Motors and Ford, as well as Chinese brands BYD and Chery. While the company’s charging network remains a strong point, its biggest operational challenge lies in managing its car-making business.
Analysts attribute the decline to Tesla’s failure to introduce more affordable EVs in 2024, which are now piling up on used car lots. The company’s newest vehicle, Cybertruck, starts at around $80,000 and has yet to gain traction with consumers.
Looking ahead to 2025, Musk plans to offer lower-cost and autonomous vehicles, which could potentially lead to a 20% to 30% growth in sales. However, the company still faces significant challenges in various markets, including Europe and China, where BYD is gaining substantial market share.
Tesla’s struggle to maintain its dominance in the EV market highlights the changing landscape of the industry. As competitors continue to gain ground, the company must adapt to remain competitive and drive growth in the coming years.
Source: https://www.cnbc.com/2025/01/02/tesla-tsla-q4-2024-vehicle-delivery-and-production-numbers.html