Tesla reports slump in annual sales, first in over a decade

Elon Musk led Tesla on Thursday reported its first annual sales drop in over ten years.

The Texas-based company sold 495,570 vehicles in the October-December quarter, bringing its total global sales to 1.79 million for 2024. This marks a 1.1% year-on-year decline from the 1.81 million vehicles Tesla sold in 2023.

The drop in its annual sales is a significant slowdown from the 37% growth in 2023 and the 50% rise in 2022.

This is the EV maker’s first sales drop since 2011, according to Global Data. The company sold 1,306 vehicles in 2010, but sales fell by 13.55% to 1,129 the following year.

However, the company witnessed a 7.06% quarter-on-quarter increase in its sales from 462,890 deliveries in the third quarter of 2024 to 495,570 in the fourth.

Growing competition

Tesla faces growing competition from Chinese EV manufacturers like BYD, Nio and Xpeng, as well as global players such as Ford, General Motors, Kia, Volkswagen and Hyundai.

BYD saw a 121% increase in sales, reaching 1.76 million electric car deliveries in 2024.

In response to a slump in demand, Tesla has reduced prices in the US and China, its core markets.

The silver lining for the company is that it remains profitable and has maintained a significant lead in the EV industry.

The company’s shares closed at $410.44, up 8.22% on the NASDAQ on Friday, January 3. On an annual basis, the stock has climbed 72.5%, taking Tesla’s market capitalisation to $1.29 trillion.