Tesla Faces First Annual EV Sales Drop in Over a Decade
Tesla’s annual vehicle sales fell for the first time in ten years, highlighting challenges in the EV market despite a record fourth quarter.
Tesla, Elon Musk, Electric Vehicles, Las Vegas, USA
Las Vegas: So, Tesla’s annual vehicle sales took a hit for the first time in over ten years. They sold about 1.79 million cars last year, which is a bit less than what they managed in 2023. Analysts were hoping for better numbers, but it didn’t pan out.
It’s a bit of a wake-up call for the electric vehicle scene. Even with all the buzz around self-driving cars and Musk’s connections with Trump, sales are struggling. Consumer interest seems to be cooling off, and that could get worse if EV incentives are cut.
After the news dropped, Tesla’s stock took a dive, falling 4.5% to around $385.72. But hey, it’s still up 63% this year, so there’s that silver lining.
In the last quarter of the year, they delivered 495,570 vehicles, which was shy of the 512,277 that analysts expected. They really needed to push to hit their growth targets.
They faced some bumps earlier in the year, like an arson incident at their Berlin factory and some shipping issues. Plus, they’ve hinted that demand is kind of in a lull right now. They even cut over 10% of their workforce, including sales staff, which is a big deal.
Still, Musk is optimistic. He thinks they can grow by 20% to 30% this year, especially with a new, more affordable vehicle on the way. But details on that are pretty scarce.
There’s some skepticism about whether they can hit those growth goals, especially if tax credits for EVs get rolled back. Trump has been pretty vocal about changing Biden’s EV policies, which could impact Tesla more than others.
On the flip side, Trump might ease up on self-driving vehicle regulations, which could be a win for Tesla. Musk has been cozying up to Trump lately, so it’ll be interesting to see how that plays out.
In a wild turn of events, one of Tesla’s Cybertrucks exploded outside a Trump hotel in Vegas, leading to an investigation. Musk claimed it was due to something in the truck’s bed, not the vehicle itself.
In the fourth quarter, Tesla’s Model 3 and Model Y sales were strong, with 471,930 deliveries. They also sold a few of their other models, like the Model X and S, totaling 23,640. The US and China remain their biggest markets.