Sales of Tesla electric vehicles fell for the first time in the company’s history

Tesla has published data on electric vehicle production and deliveries for the fourth quarter and 2024. In total, the company produced 1.77 million electric vehicles during the year, which is 4% less than the previous year, and delivered 1.79 million electric vehicles (a decrease of 1% year-on-year). Energy storage systems for 31.4 GWh were also deployed.

Image Source: Tesla

However, Tesla said that the fourth quarter was a record for deliveries, amounting to 495,570 electric vehicles. It was also announced that 11 GWh of energy storage systems were deployed during the quarter, which is also a record. Electric vehicle production in the last quarter of 2024 totaled 459,445 units, most of which were Model 3 and Model Y models.

However, despite the record quarter, the company failed to exceed the previous year’s figures. As The Verge noted, Tesla CEO Elon Musk warned at the beginning of the year that increased competition and declining demand for the company’s aging line of electric vehicles would negatively impact results in 2024. Even sales of the popular Cybertruck pickup truck, which began deliveries in late 2023, were not enough to offset Tesla’s overall sales decline this year, and the company faced a year-on-year sales decline for the first time in its history.

Also, deliveries in the fourth quarter were below Wall Street analysts’ forecast of 504,800 electric vehicles, causing Tesla shares to fall 5%.

Musk said a more affordable electric car model is on the way in 2025, and a fully autonomous Cybercab by 2026, but both projects are still struggling with implementation. The situation in the Chinese market, which is the largest and most important for Tesla, does not add optimism. Under the influence of local vendors, the company continues to lose share to BYD and other large players.

And the outlook for U.S. sales is also uncertain, as Donald Trump, upon returning to the White House, is likely to roll back many of the incentives that have helped make Tesla cars more affordable for consumers, including a $7,500 tax credit on new electric vehicles.