Additional Coverage:
Tesla’s annual sales fell for the first time in 2024, marking a challenging year for the electric car industry. The automaker delivered 1.79 million vehicles, slightly below the previous year’s record.
Despite a strong fourth quarter, with deliveries exceeding the same period in 2023, Tesla missed analyst expectations. Shares dropped by 6% in early trading.
Rising competition and industry headwinds contributed to Tesla’s sales decline. The potential end of consumer tax credits under President-elect Trump and high sticker prices compared to gas-powered options may further hinder sales.
Consumers are increasingly opting for hybrid vehicles over pure EVs, which offer fuel savings and environmental benefits at a lower cost.
However, Tesla CEO Elon Musk remains optimistic, touting autonomy as Tesla’s competitive edge and promising an autonomous Cybercab and a cheaper car model in the future.