Just over two years ago, I predicted that Elon Musk’s behavior on Twitter would hurt Tesla’s sales. My warning was based on several factors, including intensifying competition and supply chain challenges. However, at the time, I also highlighted the impact of Musk’s acquisition of Twitter as a crucial variable.
Recent data confirms my previous analysis. Despite an expanding EV market, Tesla’s 2024 deliveries have dropped by double digits from last year, showing that Musk’s actions have actively deterred potential buyers. The company continues to maintain a robust revenue stream, but the dilution of brand loyalty is evident.
Tesla’s latest quarterly numbers reveal a marked decline in deliveries, with registrations falling 7.8 percent in Q4 2024, contributing to an overall 11.6 percent decline in 2024. The California New Car Dealers Association notes that Tesla’s dominance in the electric vehicle market continues to falter.
The loss of market share isn’t solely due to fierce competition or production constraints; it’s also a signal that consumers are reacting to leadership decisions that seem increasingly disconnected from core customer expectations. Musk’s high-profile moves have shifted public discourse, eroding trust among a segment of Tesla’s traditional customer base.
To restore its position, Tesla faces a critical juncture. The company must not only sustain innovation but rebuild the connection with consumers that once fueled its meteoric rise. As investor sentiment begins to factor in the broader implications of leadership decisions and public perception, the coming quarters will be pivotal in determining whether Tesla can reverse the trend.
Source: https://oilprice.com/Energy/Energy-General/Why-Tesla-Sales-are-Plummeting.html