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Tesla's (TSLA, Financial) stock tumbled 6% on Thursday after the company announced a year-over-year drop in vehicle deliveries. Tesla delivered 1.79 million vehicles in 2024, marking a 1.1% decrease from 2023. The company also failed to meet its fourth-quarter delivery target, one of several signs of cooling demand and an intensifying battle for market share.
Tesla delivered 495,570 vehicles in the final quarter of 2024, lagging Wall Street's forecast of 503,269 units. The lineup, which includes the highly anticipated Cybertruck, accounted for 23,640 units out of 971,122 delivered, with the other models being comprised of 471,930 Model 3 and Model Y units. In the quarter, production also lagged, with 459,445 vehicles produced.
That comes while Tesla is facing plenty of challenges. For instance, EV subsidies in Europe are being scaled back, hybrid vehicle sales are growing rapidly in the U.S., and there's a lot of competition from Chinese EV leader BYD, all of which are squeezing Tesla's market share. So far, though, efforts to ramp up demand have not paid off through price cuts or the Cybertruck launch.
While rivals close in on the end of Tesla's heydays, European sales continue to fall. Of course, the desperation to get back into delivery momentum is clear when you see their current lineup, and you have to measure how reliant they are on the work being carried out right now in their new roles as self-driving taxi drivers and political influence levers.
This article first appeared on GuruFocus.