For the first time in over ten years, Tesla’s sales were worse than they were the year before. This comes despite a year-end push from the Austin, Texas-based automaker meant to make up the difference in the fourth quarter. Still, Tesla sold 1.79 million vehicles in 2024, according to a release from the company. That’s slightly below the 1.81 million vehicles Tesla delivered in 2023. It’s also below where analysts thought they’d be.
All in all, Tesla delivered 1,789,226 vehicles in 2024. The vast majority of them – 1,704,093 to be exact – were either Model 3 sedans or Model Y crossovers. The Model S, Model X and Cybertruck made up just 85,133 deliveries in all of 2024. Still, even a fourth-quarter push to deliver 495,570 vehicles wasn’t enough to beat out 2023. It would have needed to deliver about 515,000 vehicles in the quarter to meet its goal for “slight” growth in 2024, according to Bloomberg.
Here’s why this down tick happened for Tesla in 2024:
The results offer a sobering reminder of the real-world challenges for EV makers, even as hype around driverless cars and Musk’s closeness with President-elect Donald Trump have sent Tesla’s stock soaring in recent months. Lukewarm consumer demand is weighing on sales of electric cars, an issue that could be exacerbated by Trump’s push to rein in EV incentives.
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Tesla faced a series of setbacks earlier in the year, including an arson attack at its Berlin factory, shipping diversions and an industry-wide slowdown in EV sales. And it has told investors that demand for its all-electrics is between two major growth waves. In April, the Austin-based automaker cut more than 10% of its workforce, including sales staff.
Despite this, CEO Elon Musk told investors that Tesla plans to see 20 to 30 percent growth this year thanks to a more affordable vehicle (read: a de-contented Model 3) that is expected to be unveiled in the first half of 2025 as well as upgraded autonomous technology.
I feel like this is a really big and unachievable ask. Even with 2024’s slight shrinkage, Tesla still dominates the EV market. As more and more good electric vehicles hit the market and Musk becomes even more divisive, it’s hard to see a world in which Tesla gets bigger in 2025. Hell, this doesn’t even take into account the fact EV tax credits are probably dying with the Biden Administration.
