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(Bloomberg) -- Tesla Inc.’s annual vehicle sales dropped for the first time in more than a decade despite a year-end push that sent deliveries to a record in the fourth quarter.
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The Elon Musk-led company sold 1.79 million vehicles last year, it said Thursday, which was slightly less than what it delivered in 2023 and also below analysts’ consensus estimate.
The results offer a sobering reminder of the real-world challenges for EV makers, even as hype around driverless cars and Musk’s closeness with President-elect Donald Trump have sent Tesla’s stock soaring in recent months. Lukewarm consumer demand is weighing on sales of electric cars, an issue that could be exacerbated by Trump’s push to rein in EV incentives.
Tesla’s shares sank after the results, falling as much as 7.6% in New York. The stock rose 63% in 2024.
For the quarter ended Dec. 31, it delivered 495,570 vehicles, missing the 512,277 analysts had projected. It needed to sell nearly 515,000 vehicles in the quarter to meet its goal for “slight” growth in the full year.
In a note to clients, Barclay’s analyst Dan Levy wrote that the data offered “no change to narrative, but reinforces challenge for ’25 growth on existing models, reliance on still unknown Model 2.5.”
Tesla faced a series of setbacks in 2024, including an arson attack at its Berlin factory, shipping diversions and an industry-wide slowdown in EV sales. And it has told investors that demand for its all-electrics is between two major growth waves. In April, the Austin-based automaker cut more than 10% of its workforce, including sales staff.
Even so, Tesla said as recently as October that it expected to achieve modest growth in its deliveries for all of 2024. The EV maker had pushed a myriad of deals related to financing, charging and leases to end-of-year buyers.
2025 Projection
Musk told investors on Tesla’s latest earnings call that he sees 20% to 30% growth this year, fueled in part by a more affordable vehicle expected to be unveiled in the first half and on the company’s autonomous technology. The EV maker has said little about what that new vehicle will look like or what its price will be.
There is already some doubt over the company’s ability to achieve Musk’s 2025 growth objective, particularly if EV tax credits are rolled back under Trump. The president-elect has been critical of Joe Biden-era EV policies and the EV tax credit, which Musk claimed in July would hurt Tesla in the near term — but hurt Tesla’s competitors more.