Summary
- Tesla experienced a drop in sales and deliveries in 2024 after years of double-digit gains
- Globally, Tesla delivered 1,789,226 vehicles in 2024, which is down from the previous year
- Tesla’s share of the U.S. EV market dropped below 50% in 2023
- CEO Elon Musk’s political involvement in 2023 may have impacted Tesla sales and reputation
- It is unclear if Tesla experienced a similar sales drop in the U.S. in 2024, with registration-based figures showing a decrease in sales through October of that year
Article
In 2024, Tesla experienced a downturn in sales and deliveries after years of double-digit growth, with global deliveries of about 1,789,226 vehicles and production of about 1,773,443 vehicles, down from the previous year. Despite a 1% drop in deliveries and a nearly 4% drop in production, Tesla set a delivery record in the fourth quarter with 495,570 vehicles. A year earlier, Tesla had seen significant growth with sales and deliveries up 38% and 35%, respectively, over the previous year. However, global competition, particularly from China’s BYD, was increasing.
In 2023, Tesla’s CEO Elon Musk became more politically involved, affecting the public perception of the brand and potentially impacting sales. Despite price cuts, Tesla’s share of the U.S. EV market dropped to around 50% in 2023, with further decreases expected in 2024 as overall EV sales were projected to increase by about 20%. Musk’s support for the elimination of federal EV tax credits also influenced Tesla’s pricing strategy. The majority of Tesla’s global production and deliveries were from the Model 3 and Model Y, with only a small percentage from other models like the Model S, Model X, Cybertruck, and Semi.
It is unclear if Tesla’s sales in the U.S. followed the global trend, with figures through October showing a decrease in sales compared to the previous year. While Tesla does not report U.S. sales figures, preliminary data indicates a decrease in sales through October. The entire year’s sales figures were yet to be determined, but it was expected that Tesla may have faced challenges in achieving sales gains in the U.S. market. As state registration numbers are used to track sales, a clearer picture of Tesla’s U.S. sales performance was expected to be available soon.
With Tesla’s sales and deliveries declining in 2024, the company faced increased competition and challenges in maintaining its market share. Despite setting a delivery record in the fourth quarter, overall figures were down compared to the previous year. Elon Musk’s involvement in political matters and pricing strategies, along with changes in the EV market, contributed to Tesla’s market performance. The impact of these factors on Tesla’s reputation and future sales growth remained uncertain, as the company navigated shifting market dynamics and global competition.
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