Tesla Faces Its First Annual Sales Decline (Tesla Fans Schweiz – Unsplash)
Tesla recorded its first annual sales decline since becoming a publicly traded company, with a 1% drop 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 still far behind BYD, which sold 595,413 units.
The slowdown in Tesla’s sales is attributed to the increasing competition, not only from Chinese brands like BYD but also from traditional global automakers like General Motors and Volkswagen, who are gaining ground in the electric vehicle market, although they are still smaller than Tesla in this segment.
In response to the reduced demand, Tesla cut prices on 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 dropped only temporarily, closing the year with a 68% increase in valuation. This surge was driven by expectations that the company would benefit from the Trump administration’s policies, due to CEO Elon Musk’s support of the elected president.
Electric vehicle sales continue to grow globally, albeit at a slower pace than before.
Source: CNN | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team
