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Tesla reported its first annual sales decline in 12 years, with a 1.1% drop in 2024. Slowing demand, increased competition, and an aging lineup challenge Elon Musk's market dominance.
Tesla Records 1.1% Sales Decline in 2024
UPDATED: Jan 3, 2025 00:58 IST
For the first time since 2011, Tesla on Thursday reported an annual decline in global vehicle sales, sinking a stock that has soared since Donald Trump’s victory. Musk donated more than $250 million to Trump’s campaign and is a regular guest at Trump’s Mar-a-Lago resort in Florida. Tesla investors have pushed the stock up more than 50% since the election on hopes the new administration will streamline electric vehicle regulations and address other Musk policy priorities.
Tesla’s global vehicle sales rose 2.3% in the final quarter thanks to 0% financing, free charging and low-priced leases. But that was not enough for billionaire Musk’s most valuable holding to overcome a sluggish start to 2024.
The Austin, Texas, company sold 495,570 vehicles from October through December, boosting deliveries to 1.79 million for the full year. That was 1.1% below 2023 sales of 1.81 million as overall demand for electric vehicles in the US and elsewhere slowed.
The year-over-year global sales drop is Tesla’s first since 2011, according to figures from analytics firm Global Data. The company sold 1,306 vehicles in 2010, but that dropped slightly to 1,129 the following year.
The fourth-quarter boost came with a cost. Analysts polled by FactSet expected Tesla’s average sales price to fall to just over $41,000 in the quarter, the lowest in at least four years.
That doesn’t bode well for Tesla’s fourth-quarter earnings on January 29 and Tesla’s stock fell more than 7% Thursday.
(With input from AP)
Published By:
indiatodayglobal
Published On:
Jan 3, 2025
