Tesla sales fell year-over-year for the first time

Tesla sales fell year-over-year for the first time

Tesla's 2024 production and delivery figures are out, and the numbers are quite worrying.

The leading US EV company produced 1.77 million cars this year, down about 4 percent from last year, and delivered 1.79 million vehicles this year, down about 1 percent from 2023. Tesla also used 31.4 GWh in energy storage.

At the same time, the company said it had a "record" fourth quarter for deliveries, with 495,570 vehicles delivered to customers. Tesla also said it used 11 GWh of energy storage products, which is a record. And it built 459,445 vehicles, most of which were Model 3 and Y.

But the year-end increase wasn't enough to bring the company's full-year figures up to par with 2023. And in fact, Tesla CEO Elon Musk warned earlier in the year that rising competition and a drop in demand for the company's older vehicles were going to weigh on its performance overall in 2024. Even the relative popularity of the Cybertruck, which began deliveries late last year, wasn't enough to lift Tesla's fortunes this year.

And despite setting records for deliveries and energy deployment in the fourth quarter, the company still finished below Wall Street expectations of 504,800 vehicles delivered, according to Wedbush's Dan Ives. The disappointing news caused Tesla's stock price to drop about 5 percent.

It's unclear how Tesla will move forward in the new environment following Donald Trump's reelection to the presidency. Much has been said about Musk and Trump's growing alliance, but the incoming president is likely to eliminate many of the incentives that help make Tesla vehicles more affordable for consumers, including a $7,500 tax credit on new EVs.

Musk has said a more affordable Tesla is ready for 2025 and a fully autonomous Cybercab for 2026 — though both projects face plenty of hurdles. And of course, China looms over everything, as the country's growing domestic EV production is putting pressure on U.S. manufacturers doing business there. China is Tesla's biggest and most important market, and the company is losing market share to BYD and other major players.