Tesla’s 2024 Sales Miss Expectations, Sending Stock Prices Plunging
Tesla, the electric vehicle giant helmed by Elon Musk, reported disappointing 2024 sales figures today, sending shockwaves through Wall Street. The company’s performance fell short of expectations, highlighting the intensifying competition in the global EV market, particularly in China.
While Tesla announced a record-breaking fourth-quarter delivery of 495,570 vehicles, this figure still lagged behind Wall Street projections.Overall 2024 sales significantly undershot the anticipated 1.8 million vehicles, representing a slight year-over-year decline.
this underperformance contrasts sharply with Tesla’s October prediction of “slight growth” in 2024 deliveries. analysts attribute the shortfall to several factors, including increased competition from Chinese manufacturers like BYD and established automakers aggressively entering the EV space.
The sluggish production of the highly anticipated Cybertruck also played a role. While the first deliveries were made in November 2023, sales have been less robust than anticipated, according to Garrett Nelson, an analyst at CFRA Research. He noted that Cybertruck sales are “mediocre,” and Tesla’s press release grouped Cybertruck deliveries within a broader “other vehicle models” category, totaling only 85,133 vehicles for the year.
The news triggered a sharp drop in Tesla’s stock price, reversing recent gains following the November 5th presidential election. Musk’s important financial contributions to the Trump campaign and his amplification of Trump’s rhetoric on X, formerly Twitter, have also been scrutinized considering the company’s financial performance. Tesla’s profit for the first three quarters of 2024 plummeted by 31% year-over-year,a consequence of price reductions implemented to stimulate demand in a slowing market.
Tesla attributed the sales slowdown to being “between two major waves of growth,” suggesting that advancements in self-driving technology and the launch of new products will fuel future sales growth. The company faces pressure to introduce more affordable models, with the current Model 3 starting at approximately $30,000. Musk’s July declaration of a new, budget-amiable electric car slated for the first half of 2025 offered some investor reassurance, though details remain scarce.
The impact of these developments extends beyond Tesla itself.The company’s struggles underscore the challenges facing the entire EV industry as competition intensifies and consumer demand fluctuates. The market is watching closely to see how Tesla will navigate these headwinds and deliver on its promises of future innovation.
Tesla’s U.S. stock closed down 6.08% today, settling at $379.28.
