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It might be a brand-new year, but it has been anything but quiet for the folks at Tesla (NASDAQ: TSLA). Headlines have screamed about Tesla's sales decline and have gone as far to call the Cybertruck a "cyberflop." Headlines have screamed about the company's aging vehicle lineup and CEO Elon Musk's growing political agenda and antics.

But for all the negativity, investors might lose track of the positive developments. Here are three reasons not to sell, despite the negative narratives.

Cybertruck or cyberflop?

When it comes to the Cybertruck, allegedly Tesla's Ford Motor Company F-150 Lightning fighter, critics didn't hold back their opinion. Said Robby DeGraff, manager of product insights at AutoPacific, according to Automotive News:

The initial sales targets for the Cybertruck preached by Musk years ago are nothing short of comical. It's just a dumb product, top to bottom. Look at the Tesla Model 3 -- it's really, really good. I wish Tesla could have mirrored that excellent execution elsewhere rather than wasting time on the Cybertruck.

If one critic wasn't enough, here's another taste. According to Karl Brauer, executive analyst at iSeeCars, according to Automotive News:

I think the Cybertruck can be officially considered a flop now. Remember, this was going to be Tesla's F-150. The new benchmark, foundational vehicle for the Tesla brand to keep it super powerful, super profitable and high volume.

Those are pretty harsh comments, but to be fair, the Cybertruck doesn't appear to be a flop just yet. The Cybertruck broke into the top 10 EVs sold in the U.S. at No. 5, with nearly 39,000 units sold. That edged out Ford's F-150 Lightning, ranked No. 6 with just over 33,500 units sold, and it was enough to displace Rivian's R1T from the ranking list.

Island of success

Tesla in a way finds itself on an island of success in China, which is a rare feat for foreign automakers these days. China's brutal price war and surge of new energy vehicles, which includes plug-in hybrids, hybrids, and fully electric vehicles, has destroyed margins and sent many foreign automakers scrambling to salvage market share.

Tesla is one of the few, if not the only, foreign automaker competing well in China currently. Tesla announced its China sales rose 8.8% to a record high of more than 657,000 vehicles in 2024. Better yet, Tesla ended the year in China on a strong note with a 12.8% sales gain in December, compared to the month earlier.

Tesla's success in China will be more important than ever, with competition increasing and the company's global sales posting its first decline in company history. In fact, Tesla delivered nearly 37% of its vehicles to customers in China, making it a critical market.

Down but dominating

You've heard of the phrase "down but not out," but have you heard of the phrase "down but still dominating"? Probably not, but that's exactly what Tesla is doing in the U.S. EV market.

Tesla's Model Y and Model 3 posted 6.6% and 17.4% sales declines in 2024, respectively, compared to the prior year. However, despite the sales decline, the two models still ranked No. 1 and No. 2, respectively, and dominated in U.S. EV sales.

In fact, taking a look at the top 10 graphed shows just how dominating Tesla still is.

While Tesla's U.S. sales declined 5.6%, compared to the prior year, and its market share dropped to 48.7% from 65% in 2022, the EV maker still dominates the top of the charts. It was simply inevitable that Tesla couldn't continue controlling the entire EV market.

What it all means

It's a brand-new year, but it's the same polarizing Tesla that investors either love or hate. Tesla's global deliveries might have declined slightly, but that's to be expected, with a plethora of new vehicle models launching and price competition intensifying.

What matters is that Tesla is still dominating in the U.S. and is one of few foreign automakers still doing well in China. Tesla will also receive some reinforcements as the company's Model Y refresh has launched in China, Europe, and the U.S. markets. Ultimately, Tesla has positioned itself for another solid year within the ever-evolving EV industry, so don't worry about the negative narratives.

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Daniel Miller has positions in Ford Motor Company. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

The Growing Negative Tesla Narrative Is Wildly Overblown. Here Are 3 Reasons Not to Sell. was originally published by The Motley Fool