Tesla Experiences First Sales Decline in Years for 2024

Tesla Inc., recognized as the preeminent electric vehicle (EV) manufacturer in the U.S., reported an unusual annual decrease in vehicle deliveries for the year 2024.

On January 2, the Texas-based tech company released a quarterly update on its production and deliveries for the last three months of 2024. The report indicated that the company delivered 495,570 vehicles in that quarter, culminating in approximately 1.789 million annual deliveries. This figure represents a decline from the roughly 1.81 million vehicles delivered in 2023.

This annual decrease marks the first decline in deliveries seen in the last nine years. A group of analysts at Truist Securities, led by William Stein—a semiconductor and artificial intelligence equity research analyst—remarked in an investor note that the delivery numbers were slightly under Wall Street’s expectations.

As a result of the January 2 delivery announcement, Truist revised its price target for Tesla shares to $351 from $360, while maintaining a “hold” rating on the stock. Stein and his colleagues noted their expectation that the average selling price of Tesla vehicles will “continue to face downward pressure.”

In their Thursday note, Stein and his team expressed their belief that Tesla will persist in adjusting pricing to boost demand.

Reportedly, Tesla had already begun implementing significant discounts for certain models at the end of 2024.

The Thursday report indicated that Tesla is scheduled to disclose its earnings for the fourth quarter on January 29.

In its third-quarter earnings announcement made on October 24, 2024, Tesla disclosed that it achieved a net income of $4.821 billion during the first three quarters of 2024, representing a noticeable decrease from the $7.031 billion reported during the same period in 2023.

Representatives from Tesla did not immediately reply to a request for comment from The Epoch Times.

As per the U.S. Energy Information Administration, Tesla holds the top position as the leading EV brand in the United States, commanding approximately 49 percent of the market share for battery-powered EV sales in the third quarter of 2024.

The delivery report released on Thursday created a ripple effect on investors’ confidence in Tesla, reflected by a drop in the company’s stock price. Around midday, Tesla’s stock value had decreased by over 5 percent, falling from an opening price of $390.66 to $382.15.

Despite this recent dip, Tesla’s stock has nearly doubled in value over the past six months, following a peak in December 2024 when shares were valued at $479.12! The most significant gains were observed in the weeks following President-elect Donald Trump’s victory in the 2024 presidential election.

While both domestic and international automotive industries are ramping up EV production to meet projected demand and adhere to upcoming environmental regulations, U.S. consumers remain heavily skeptical about EVs. Previous reports from The Epoch Times highlighted that EVs tend to be considerably pricier than internal combustion engine (ICE) vehicles, coinciding with a time when many Americans struggle to afford new or used cars. Moreover, concerns linger about the range and reliability of EVs compared to ICE vehicles.

The EV sector may face challenges under the incoming Trump administration as well. The president-elect has pledged to reverse numerous policies from the Biden administration concerning EVs, though specific actions have yet to be announced. Policies introduced during Biden’s tenure, such as a tax rebate program, were considered beneficial in encouraging Americans to transition to EVs.

Tesla’s CEO Elon Musk, known for his outspoken views on various financial and technological issues, has developed a close relationship with the upcoming president over the last six months.

Federal Election Commission filings show that Musk was the largest individual donor to the Trump campaign, contributing over $238.5 million through his super PAC, America PAC, and other avenues, with the majority of funds directed towards supporting Trump.

Musk, originally from South Africa, may also secure a position within the Trump administration. He is expected to work alongside former Republican presidential candidate Vivek Ramaswamy to lead the newly formed Department of Government Efficiency, aiming to enhance governmental efficiency, minimize waste, and reduce excessive regulations.

At least one investor has expressed concerns regarding Musk’s attention to Tesla, given his dual roles at both the social media platform X Corp. and Space Exploration Technologies Corp.

In a late December interview with Yahoo Finance, Ross Gerber, president of Gerber Kawasaki Wealth and Investment Management, commented, “Tesla shareholders are acutely aware that their CEO is working for Donald Trump at this point.”

The Associated Press contributed to this report.