The Tesla Cybertruck explosion outside the Trump International Hotel in Las Vegas on New Year’s Day occurred Thursday following Tesla’s release of its fourth-quarter delivery numbers and a drop in its stock price.
Newsweek reached out via email to Tesla for comment on Thursday morning.
Authorities are investigating whether the Las Vegas incident, in which one user died and seven others were injured, was a terrorist attack. This news adds to a difficult start to the year for Tesla, as the Cybertruck, introduced with great fanfare in late 2023, has struggled to meet the expectations of major investors.
The company’s disappointing delivery numbers were reflected in inventory performance, with Tesla inventory falling 5% in the open market on Thursday.
Tesla’s disappointing 2024 sales, which marked its first annual decline in a decade, have raised investor concerns. A combination of missed goals, a market slowdown and an expanding festival caused Tesla shares to fall 6. 08% at the market close on Thursday.
In the fourth quarter, Tesla delivered 495,570 vehicles, below its target of 515,000 units. The Cybertruck, unveiled at the end of 2023, added less than 50,000 units to the year’s total, well below expectations. year to 1. 79 million vehicles, 1. 1% less than the 1. 81 million delivered in 2023.
The broader electric vehicle market also presents challenges. Rising interest rates and economic uncertainty are pushing consumers toward less expensive hybrids, while classic car makers are ramping up production of electric vehicles, expanding the festival in key markets such as the United States and China. Europe and China. Tesla remains the market leader, but is under pressure to update its outdated product line.
Tesla’s stock performance has reflected these challenges. After a 29 percent drop in the first quarter—its worst in two years—the stock rallied late in the year, ending 2024 up 63 percent and hitting a record high in mid-December. However, the recent decline has renewed concerns about the company’s ability to sustain growth.
Adding to the uncertainty, CEO Elon Musk’s involvement in politics has drawn attention. Musk has spent $277 million supporting President-elect Donald Trump and other Republican candidates, actively campaigning in key states. He also named co-head of the new Department of Government Effectiveness, raising questions about how much attention he will be able to pay to Tesla.
Despite those headwinds, Tesla shares have gained about two-thirds of their price since Election Day, boosted by optimism surrounding Musk’s political influence. Investors are now closely watching Tesla’s next steps, adding plans to create more affordable models, to see if the company can regain momentum in a competitive market.
Musk responded to the incident in Las Vegas, calling the perpetrators evil and asserting that the vehicle’s design limited the damage.
“The evil knuckleheads picked the wrong vehicle for a terrorist attack. Cybertruck actually contained the explosion and directed the blast upwards. Not even the glass doors of the lobby were broken,” Musk posted on X (formerly Twitter), which he owns.
In a separate statement, he emphasized that Tesla’s telemetry data showed no faults in the vehicle and said the explosion was unrelated to the Cybertruck’s functionality.
Daniel Ives, a currency analyst at Wedbush Securities, said in a report: “We’ve never seen Tesla just as an automaker. . . Instead, we have seen Musk and Tesla as a leading global player in the disruptive technologies sector. “
Sam Fiorani, vice president at industry research group AutoForecast Solutions, told CNBC: “Musk’s foray into politics may have pulled his focus away from his core businesses.”
Tesla’s functionality is heavily monitored and is an indicator of the global electric vehicle industry. An ambitious sales expansion goal of 20-30% has been set until 2025, but achieving this goal will largely depend on the good fortune of the Cybertruck and the arrival of more models.
Despite the close alliance between Musk and Trump, Tesla faces some uncertainty under the new administration. While plans to reduce regulations and introduce federal rules for self-driving cars may simply satisfy Tesla’s robot-taxis ambitions, the potential elimination of federal subsidies for electric cars poses a significant challenge.
The company is expected to complete its financial effects in the fourth quarter after the market closes on January 29.
Jesus is a Newsweek Live News Reporter based in New York. Originally from Bogotá, Colombia, his focus is reporting on current affairs and trending news. He has covered world politics, migration, pop culture, and sports. Jesus joined Newsweek’s U.S. bureau in 2024, and has previously worked for The Financial Times and served as an international reporter and newsletter editor for El Espectador in Colombia. He graduated with an M.A. in Journalism and Digital Innovation from New York University. Languages: English, Spanish. You can get in touch with Jesus by emailing [email protected]