Tesla Sees First-Ever Year-Over-Year Sales Decline

Tesla’s production and delivery figures for 2024 have revealed a sobering reality for the electric vehicle leader.


The company produced 1.77 million vehicles this year, marking a 4% decrease compared to 2023. In terms of deliveries, Tesla reached 1.79 million, about 1% fewer than the previous year. Additionally, Tesla deployed 31.4 GWh of energy storage, though this alone wasn’t enough to offset the overall sales downturn.


Despite these setbacks, the company did experience a strong fourth quarter, setting new records for both deliveries and energy storage deployment. Tesla delivered 495,570 vehicles during the final quarter of the year, with 459,445 units produced, predominantly consisting of Model 3 and Model Y vehicles. Energy storage deployments also reached a record 11 GWh in Q4.


However, this late surge in deliveries wasn’t enough to bring Tesla’s full-year figures up to 2023 levels. Tesla CEO Elon Musk had already signaled earlier in the year that intensified competition and reduced demand for its aging model lineup would weigh on 2024 results. Even the introduction of the Cybertruck, which began deliveries late last year, failed to reverse the trend.


While the fourth-quarter performance was strong, it still fell short of Wall Street’s expectations, which had forecast 504,800 vehicles delivered. As a result, Tesla’s stock price took a hit, dropping by about 5% following the announcement of the disappointing numbers.


Looking ahead, the future remains uncertain. A potential shift in U.S. policy following a possible second term for President Donald Trump could further impact Tesla’s prospects. If the new administration eliminates key incentives, such as the $7,500 EV tax credit, Tesla vehicles may become less affordable, which could dampen demand.


Musk has teased the release of a more affordable Tesla in 2025 and a fully autonomous Cybercab by 2026, but both projects face significant hurdles. Furthermore, Tesla’s position in China is becoming increasingly precarious as the country’s domestic EV market grows at a rapid pace. The Chinese market, which is Tesla’s largest and most important, is seeing rising competition from local manufacturers like BYD, eroding Tesla’s market share.