Tesla’s annual deliveries recorded a decline for the first time in 2024. The electric car maker delivered fewer electric vehicles than expected in the fourth quarter and stimulus measures did not succeed in boosting demand for its older models.
The company’s shares fell 3.5% in pre-opening trading, in reference to investors’ concerns about the challenges faced by CEO Elon Musk, who expected that stimulus measures such as interest-free financing would lead to “slight growth” in deliveries in 2024.
Tesla has been under pressure due to reduced European support, a shift towards lower-priced hybrid vehicles in the United States, and tougher competition from the Chinese company BYD.
In response, Musk directed Tesla toward self-driving taxis, and supported US President-elect Donald Trump with millions of dollars in campaign donations in the hope that this would ease regulatory restrictions on the company.
The automaker delivered 495,570 vehicles in the three months until December 31.
Fifteen analysts surveyed by the London Stock Exchange Group expected delivery of 503,269 vehicles in the fourth quarter.
Tesla delivered 471,930 units of the Model 3 and Model Y, and 23,640 units of other models, including the S sedan, Cybertruck, and X luxury sports car.
The company produced 459,445 vehicles during the period from October to December.
The company delivered 1.79 million vehicles in 2024, a decrease of 1.1% from the previous year, which is less than the expectations of analysts polled by the London Stock Exchange Group to deliver 1.806 million vehicles.
October registrations for Tesla vehicles in Europe fell by 24% due to intense competition from the Volkswagen Group, whose Skoda Eniac sports car dethroned the Model Y to become the best-selling electric car in the region, according to data research company JATO Dynamics.
Lower prices and incentives squeezed Tesla’s profit margin on vehicle sales last year. However, Wall Street expects demand to rise in 2025 as the Federal Reserve (US central bank) cuts interest rates.
