Tesla, the pioneer of the electric vehicle (EV) industry, is facing an uncertain future after reporting a decline in automotive sales and revenue. Despite scaling production and turning a profit, the company’s business is struggling to overcome long odds.
Tesla’s declining auto sales have dropped by 1.1% to 1.79 million units in 2024, and its automotive revenue has also declined by 6% to $77.1 billion. The company’s total revenue rose 1% to $97.7 billion due to growth in its energy storage and generation business, as well as services.
However, vehicles are the core component of Tesla’s business, and its declining sales volume and average selling price have raised concerns about the company’s ability to stay competitive. The company has lowered prices on its vehicles, but demand has continued to fall despite this move.
Tesla’s market share among all vehicles has fallen over the last year in North America and Europe, while it has risen slightly in China, the world’s largest EV market. Analysts expect 19% revenue growth for Tesla in 2025, but given its lofty valuation, the company’s stock seems to have more to lose than to gain at this point.
Despite CEO Elon Musk’s promises of full self-driving and robotaxis, the market appears to be overlooking the challenges Tesla is facing. With a capacity of three million vehicles, Tesla expects to return to vehicle growth in 2025, but it remains to be seen whether demand will pick up.
Source: https://www.fool.com/investing/2025/02/02/where-did-teslas-demand-go