Tesla, the American electric vehicle (EV) giant known for its cutting-edge innovations, has seen its first annual sales decline in at least nine years. Data shows the company delivered 1.79 million vehicles in 2024, a 1.1% drop from 2023. The decline highlights growing competition and buyer concerns about EV costs, range, and charging infrastructure.
In the last quarter of 2024, Tesla managed a 2.3% sales boost, but analysts say aggressive discounting to achieve these numbers hurt profit margins. The average Tesla sale price fell to just over $41,000, the lowest in four years, signalling a shift in the market.
The company’s lower-priced Models 3 and Y accounted for the majority of sales. Meanwhile, Tesla sold only 23,640 units of its pricier models, including the X, S, and new Cybertruck. Analysts attribute this trend to an ageing model lineup, stiffer competition, and increasing market shares held by automakers like China’s BYD. BYD’s 2024 sales surged by 41%, with 1.77 million EVs delivered, placing it close to Tesla’s numbers.
Despite the sales slump, Tesla’s stock has remained resilient, gaining over 50% in the past year. Financial analysts argue that Tesla is more than just a car company, praising its disruptive technological advances and global influence.
With earnings set to be announced on 29 January, the EV leader faces mounting pressure to adapt, innovate, and regain momentum in an increasingly crowded market. Investors and consumers alike will be closely watching the company’s next moves.
