Tesla’s annual EV sales drop for first time in over a decade

Tesla Inc. saw its annual vehicle sales drop for the first time in over a decade, with 1.79 million vehicles sold in 2024, slightly below 2023’s numbers and analysts' expectations.

Despite a strong year-end push that led to a record 495,570 deliveries in Q4, the company fell short of the 512,277 vehicles analysts had projected. Tesla's shares fell 5.8% following the results, though the stock had risen 63% in 2024.

The company's struggles highlight challenges in the EV market, including lukewarm consumer demand and the potential rollback of EV incentives under President-elect Donald Trump, which could further pressure sales.

Tesla has projected 20%-30% growth in 2025, driven by a more affordable vehicle and advancements in autonomous technology. However, skepticism remains, especially if EV tax credits are reduced.

Tesla’s fourth-quarter sales of Model 3 and Model Y accounted for 471,930 deliveries, while the “other models” category, which includes the Model X, S, and Cybertruck, saw 23,640 deliveries. Tesla faces increasing competition, notably from BYD Co., which sold 4.25 million vehicles last year.

In addition to vehicle sales, Tesla set a record for its energy business, deploying 31.4 gigawatt hours of energy products in 2024.