Tesla’s Global Sales Fall For The First Time In Over A Decade
- Tesla just recorded its best fourth-quarter sales performance in company history.
- Despite that, the EV maker sold fewer cars in 2024 compared to its total in 2023.
- The company’s stock has tumbled over 20% in a week, raising concerns among investors.
Tesla’s fourth-quarter sales results are in, and, as expected, they’re a bit of a mixed bag. On the upside, the company set a new record for quarterly sales. On the downside, it missed projections and sold fewer cars in 2024 than in 2023, marking its first-ever annual sales decline in over a decade amid growing competition in the global electric vehicle market. Unsurprisingly, this has contributed to a drop in the company’s stock price. Let’s break it all down.
See: Tesla Model Y Juniper Caught With Split Headlights And Rear Light Bar
First, Tesla delivered 495,570 vehicles in the fourth quarter of 2024. That’s an improvement over its previous record-breaking quarter (Q3 of 2024), which saw 462,890 deliveries. However, analysts had projected that Tesla would deliver closer to 500,000 vehicles. To match its 2023 total sales , Tesla would have needed to deliver more than 510,000 cars in Q4, meaning it fell short of what was necessary to avoid a year-over-year decline.
2024 vs. 2023: The Numbers Game
As a result, Tesla fell short of its goal of surpassing the 1.8 million deliveries achieved in 2023, ending 2024 with exactly 1,789,226 vehicles delivered. The breakdown of these numbers is particularly noteworthy: 1,704,093 of those deliveries came from the Model Y and Model 3. This means the Model S, Model X, and the newly launched Cybertruck collectively accounted for less than five percent of Tesla’s total sales.
In addition to its vehicle deliveries, Tesla reported strong performance in its energy business. The company says that it delivered a record 11.0 GWh of energy storage products in the fourth quarter of 2024. It hasn’t released financial results yet which could shed some additional light on how the brand is doing. Those will come out on January 29 after the market closes.
Tesla Stock Faces Continued Pressure
Tesla’s latest sales report hasn’t done much to stabilize the company’s ongoing stock slump. As of this writing, Tesla shares have dropped 6.8% for the day, capping off what’s been a rough week. Over the past five trading days, TSLA has fallen from a high of $465 per share to just $375.
It’s unclear what might stop the bleeding, or so-to-speak, at least in the short term. Perhaps the alliance between Elon Musk and Donald Trump will come into play but we’ll have to wait a little while longer to see how that shakes out.
Refreshed Model Y And New Sub-$30K EV
One factor working in Tesla’s favor is the imminent launch of the updated version of its bestselling Model Y, codenamed Project Juniper. Expected to hit most global markets in the coming months, this refreshed model should help boost sales and bolster confidence as the company moves into 2025.
Read: Tesla Exec Confirms Sub-$30K Model Q And 2025 Product Plans
Additionally, CEO Elon Musk has expressed optimism about the company’s future, predicting more than 20% growth in sales for 2025. Adding to this, a recent Deutsche Bank report revealed that Tesla’s Head of Investor Relations, Travis Axelrod, confirmed the planned launch of a lower-cost vehicle priced under $30,000 in the first half of 2025. With the introduction of this budget-friendly model alongside the updated Model Y, could reignite Tesla’s sales momentum and help the company regain its footing in the crowded EV market.