With a 1.1% drop in global sales for 2024, Tesla (NASDAQ:TSLA) reported the first annual sales drop since at least 2015. Demand for EVs decreased in the United States and other areas, thus total deliveries for the year dropped from 1.81 million in 2023 to 1.79 million.
With 495,570 automobiles supplied in the fourth quartera 2.3% rise over the previous quarterthe Austin, Texas-based firm Still, FactSet found the number fell short of Wall Street projections of 498,000. Analysts also observed that Tesla's average sales price most likely fell to a little over $41,000 during the quarter, its lowest level in at least four years, possibly impacting its bottom-line.
Among Tesla's difficulties are outdated car models and more fierce competition from startups in major countries such as China, Europe, and the United States as well as from legacy companies Declining sales are also linked by analysts to worries pertaining with EV range, price, and charging infrastructure.
Once projecting annualized sales growth of 50% on a regular basis, the corporation relied on low-cost leasing, free charging, and 0% financing to boost demand. However, these discounts ate into Tesla's industry-leading profit margins. Thursday morning Tesla shares dropped 3%, although over the past year, they have stayed up over 50%. It's important to note that fourth-quarter earnings are scheduled for January 29.