Tesla has released its production and delivery numbers for 2024, and the results are a significant shift for the electric vehicle (EV) leader. Teslaโs sales have fallen for the first time compared to the previous year, highlighting new challenges for the company.
A year of decline in production and deliveries
Q4 2024
— Tesla (@Tesla) January 2, 2025
Production: 459,445
Deliveries: 495,570
Energy storage deployments: 11 GWh
A record for both deliveries & deployments
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Full year 2024
Production: 1,773,443
Deliveries: 1,789,226
Energy storage deployments: 31.4 GWh
โ https://t.co/YF9iWpPuud
Tesla produced 1.77 million vehicles in 2024, a 4% drop from 2023. Meanwhile, deliveries stood at 1.79 million vehicles, representing a decline of 1% year over year. The company also deployed 31.4 GWh of energy storage products over the year, demonstrating growth in its energy division despite challenges in vehicle sales.
While the yearly numbers are down, Tesla reported a โrecordโ fourth quarter. In the last three months of 2024, the company delivered 495,570 vehicles and deployed 11 GWh of energy storage productsโquarterly highs. During the same period, it produced 459,445 cars, predominantly its popular Model 3 and Model Y units.
Despite the strong finish, the yearly performance fell short of Wall Streetโs expectations. According to Wedbush analyst Dan Ives, analysts had predicted 504,800 vehicle deliveries for Q4. Teslaโs stock reacted to the news, dropping by approximately 5% as investors processed the underwhelming results.
Competition and an ageing lineup impact performance
Tesla CEO Elon Musk had warned earlier this year that the company would face significant hurdles in 2024. The key concerns were increased competition, particularly from established manufacturers entering the EV market, and a dip in demand for Teslaโs ageing vehicle lineup.
Although Teslaโs much-anticipated Cybertruck began deliveries in late 2023, its success wasnโt enough to boost its overall performance. Tesla continues to rely heavily on its Model 3 and Model Y vehicles, but newer competitors and more innovative designs from rivals have eaten into its market share.
Chinaโs growing EV market poses another significant challenge. Teslaโs most prominent international market rapidly expands from domestic companies such as BYD, steadily gaining ground. Teslaโs market share in the region continues to decline, raising questions about its ability to remain competitive globally.
Future outlook under changing policies
Tesla faces an uncertain landscape as Donald Trump prepares to return to the presidency. Policy changes under the new administration could further impact the EV industry. Notably, the anticipated removal of the $7,500 federal tax credit for new EV purchases could make Teslaโs vehicles less accessible to consumers.
Musk has promised a more affordable Tesla model for 2025 and a fully autonomous โCybercabโ for 2026. However, these projects have significant challenges, including cost reductions and technological hurdles. As the EV market evolves, Teslaโs ability to adapt will be critical.
The companyโs future also hinges on maintaining its innovative edge. With competition heating up and external pressures mounting, Teslaโs ability to stay ahead will determine whether it can reclaim its momentum in future years.
