Though Tesla had a record-strong quarter in the final months of 2024, it wasn’t enough to stop the electric carmaker’s annual sales from dropping for the first time in its history.
Tesla posted record-high numbers for the final three months of 2024, delivering 495,570 EVs compared to 484,507 shipped at the same time last year.
However, Tesla’s annual numbers were down. The carmaker delivered 1,789,226 electric vehicles in 2024, a decline from the 1,808,581 EVs the company sold in 2023 and below analyst estimates by about 20,000 units, according to Barron’s.
Related: Tesla Sales Show Demand Could Be Speeding Up For Electric Cars
Tesla’s quarter results, while record-breaking, were also below Wall Street estimates of 504,800 deliveries, per Wedbush Securities.
Tesla shares were down nearly 6% on Thursday following the news.
Following President-elect Donald Trump’s win in November, Tesla’s market cap surged to over $1 trillion for the first time since 2022. Tesla’s market cap is $1.2 trillion at the time of writing.
One reason for the decline is increasing competition from international companies.
According to Bloomberg, a Chinese Tesla competitor, BYD, sold 4.25 million EVs and plug-in hybrid cars in 2024 compared to the 1.79 million EVs Tesla sold.
The U.S. EV market has also shifted to include more players. Clean Technica noted that Tesla commanded less than 50% of the U.S. EV market for the first time in six years in 2024. Ford, Kia, Hyundai, and BMW were all rising competitors that encroached on Tesla’s market share.
Related: Tesla Reports ‘Record’ Earnings as Musk Predicts It Will Become ‘the Most Valuable Company in the World’
“If they [Tesla] want to continue to see the growth they had, they need to expand to other sizes and price points,” Jeff Schuster, vice president of automotive research Global Data, told AP.
Analysts also told ABC News that in the U.S., early EV adopters have already purchased vehicles, but mainstream car buyers are still hesitant to do so; they are worried about the technical aspects, costs, how many miles they can go on a single charge, and where to find charging stations.
Related: Elon Musk Announces the ‘Cybercab’ and Other Surprises at Tesla’s ‘We, Robot’ Event. Here’s What to Know.
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