Tesla’s annual vehicle sales dropped for the first time in 2024 as it battled industrywide headwinds and increasing competition.
Elon Musk’s electric carmaker said on Thursday that it will sell about 1. 79 million cars in 2024, up from 1. 8 million last year and completing a difficult year for electric cars overall.
During the fourth quarter, Tesla delivered 495,570 to its customers. Analysts surveyed via Bloomberg expected around 510,000. Shares fell about 6% in early trading.
Despite falling short of analysts’ expectations, Tesla’s fourth-quarter deliveries increased by more than 11,000 vehicles over the same period in 2023.
But sales could be even more complicated for Tesla and its competitors. President-elect Donald Trump has vowed to end admission tax credits, which reduce the value of vehicles by up to $7,500. Sticker prices are still stubbornly higher compared to classic gasoline options.
Many consumers have turned to hybrids instead of natural electric vehicles. Hybrids can offer many environmental and gas-saving benefits for less money and without any lifestyle changes.
The signs of concern in the market have not shaken Musk, who has touted autonomy as Tesla’s new competitive advantage and said buying another car would be a monetary mistake.
Tesla has promised an autonomous “Cybercab” and a cheaper car model in the coming year.
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