Tesla's Sales Decrease for First Time in More Than a Decade as China's BYD Experiences Growth
Tesla's Sales Decrease for First Time in More Than a Decade as China's BYD Experiences Growth
Tesla's explosions might be making headlines, but their sales figures aren't. Elon Musk's automotive venture released its yearly sales figures for 2024, showing that they delivered 1.79 million vehicles, just shy of the 1.8 million they shipped out in 2023. This marks the first drop in automobile sales for the company in over a decade, despite reduced prices, intense media hype, and the expanded availability of the Cybertruck.
The declining sales figures for the year fell short of analyst predictions, even with a last-ditch effort to boost sales in the fourth quarter. From October to December, Tesla delivered 495,570 vehicles, a figure partially driven by the company offering any incentive they could think of to draw in potential buyers. Zero-percent financing? You got it. Three months of free "Full Self-Driving" and Supercharging? Done.Super affordable leases? You bet. Yet, sales still fell short—and now, the stock price is plummeting, too.
Usually, when you're about to miss investor targets, you try to dampen expectations for the future until you can recover. But Musk has already set the stage for exponential growth. Back in October, Tesla's CEO informed investors that he expects sales to increase by up to 30% in 2025.
It's reasonable to question that assertion, particularly given that the company just missed its sales targets for the year when market conditions were more favorable than they will be soon. Musk's ally, Donald Trump, seems determined to eliminate the Biden-era electric vehicle tax credit, which has significantly boosted EV sales over the past few years. Even places like California, which aim to maintain a credit to encourage electric vehicle purchases, are now talking about excluding Teslas from eligibility.
Globally, the market is about to become increasingly challenging for Tesla to compete in as well. While the company hit a record high for car sales in China last month, it's also losing market share to Chinese competitor BYD. The company sold 4.25 million cars this year and is now threatening to surpass Tesla as the most popular EV in China.
There doesn't appear to be an obvious solution in sight for Tesla either. The Cybertruck remains the company's most recognizable vehicle due to its futuristic garbage truck aesthetic, but they only shipped less than 50,000 units in 2024. The demand for the truck seems to be leveling off or even decreasing.
Perhaps Trump's plan to relax federal regulations on self-driving vehicles will spark a massive rush for Tesla's promised "Cybercab," a two-seat autonomous car (that might actually be remotely controlled by humans) which Musk claims will cost under $30,000 and will flood the streets within two to three years. However, given the company's challenges in scaling up production, it would be hard to imagine they could meet demand, even if it presented a chance to turn around their sales trend.
Despite the challenges in sales and market competition, Tesla's CEO, Elon Musk, still has high expectations for the future. He predicts up to a 30% increase in sales for 2025, attributing this to advancements in tech and technology.
Musk's vision for the future includes the development of self-driving vehicles, such as the Cybercab, which he claims will be affordable and widely available, leveraging advancements in tech and technology.