Tesla’s global deliveries fell for the first time in a decade, as the US electric car leader reported 1.79 million sales in 2024 – down 1.1 percent from the 1.81 million recorded in 2023 and below Wall Street expectations.
The company’s shares fell 6 percent on Thursday, wiping more than $80 billion off its market value.
This setback comes despite the stock’s rise by more than 50 percent in the past 12 months, supported by Elon Musk’s relationship with incoming US President Donald Trump, and his hope for easing federal regulations related to self-driving vehicles. Tesla once projected 50 percent annual growth, but now faces fierce competition from Chinese manufacturers, especially BYD, which is closing in on Tesla’s crown as the world’s largest electric vehicle maker.
BYD reported total sales of 1.76 million electric vehicles for 2024, boosted by a record 207,734 vehicles delivered in December, supported by rebates and government support in its home market. China accounts for 90 percent of BYD’s sales, but expansion abroad remains a challenge as the European Union and the United States impose tariffs on imports.
Despite the decline, Wedbush analyst Daniel Ives stresses that Tesla shares remain a strong option, as the company is viewed as a “leading global player in revolutionary technology” and not just a car manufacturer. However, Truist Securities’ William Stein struck a note of caution, arguing that Tesla could cut further to lift sales and that such moves could undermine its financial results, due at the end of the month.
Nearly all of Tesla’s 2024 sales came from the smaller, cheaper Model 3 and Model Y lines, while the more expensive Model The same e-truck made headlines this week after one exploded outside the Trump Hotel in Las Vegas, killing the driver. Musk insisted that “a very large firework and/or bomb” in the trunk was to blame, rather than any design error.