Tesla recorded its first annual sales decline since becoming a publicly traded company, with a 1% decrease in sales in 2024 compared to the previous year.
However, the company still maintained its global leadership in the electric vehicle market, with 1.8 million units sold, surpassing its Chinese rival BYD by 24,000 vehicles. In the fourth quarter, Tesla sold 495,570 vehicles, a 2% increase compared to the same period in 2023, but far behind BYD, which sold 595,413 units.
The slowdown in Tesla’s sales is attributed to increasing competition, not only from Chinese brands like BYD but also from traditional global automakers such as General Motors and Volkswagen, which are gaining ground in the electric vehicle market, although still smaller than Tesla in this segment.
In response to declining demand, Tesla reduced the prices of its vehicles, particularly in China and the United States, while maintaining a profitability advantage over its competitors.
Despite the weak sales report, Tesla’s stock only temporarily dropped and closed the year with a 68% gain. The increase was driven by expectations that the company would benefit from Trump administration policies due to CEO Elon Musk’s support for the elected president.
Sales of electric vehicles continue to grow globally, albeit at a slower pace than in the past.
Source: CNN | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team