Detroit — Tesla’s global annual sales fall for the first time in at least nine years, with 2.3% increase in final quarter overcoming poor start to 2024 despite 0% financing, free charging and low-cost lease offers It wasn’t enough to do that.
The Austin, Texas-based company delivered 495,570 vehicles from October to December, increasing deliveries for the year to 1.79 million. However, as overall demand for electric vehicles slowed in the United States and other countries, sales were 1.1% lower than the 1.81 million units sold in 2023.
The economic recovery in the fourth quarter came at a cost. Analysts surveyed by data provider FactSet expect Tesla’s average selling price to fall to just over $41,000 in the quarter, the lowest level in at least four years.
This doesn’t bode well for Tesla’s fourth-quarter financial results, which it announced on January 29th.
Tesla predicted its sales would rise 50% in 2022 compared to a normal year, but those predictions have run into an aging model lineup and increased competition in China, Europe and the United States. In the United States, most early adopters of the technology already own electric vehicles, analysts say. And mainstream buyers are concerned about range, price, and whether they can find charging stations on long trips.
Fourth-quarter deliveries fell short of Wall Street expectations. Analysts polled by FactSet had expected sales of 498,000 units.
Tesla shares fell nearly 7% on Thursday, but soared after Donald Trump’s election victory, rising more than 50% in the past 12 months.
A decline in sales at the start of the year prompted automakers to offer unprecedented discounts, reducing industry-leading profit margins.
Competition is also increasing, as established and emerging automakers seek to chip away at the company’s market share.
The decline in sales is an investment that has boosted Tesla’s stock since the election on bets that the incoming Trump administration will ease EV regulations and boost Tesla’s move toward building fully self-driving cars powered by AI. It will be a test for the family.
Wedbush financial analyst Daniel Ives said he thinks the stock is still worth buying despite the sales decline.
“We have never looked at Tesla simply as a car company. Rather, we have always looked at[Elon]Musk and Tesla as a global leader in disruptive technology,” Ives said in the report. mentioned in. “And the first part of this grand strategic vision has taken shape.”
Trust Securities analyst William Stein believes Tesla will struggle to sell cars in the coming months, and expects further discounting aimed at boosting sales will weigh on results.
Almost all of Tesla’s sales came from the smaller, cheaper Model 3 and Model Y, while the company sold only 23,640 of its more expensive models (including the X and S, as well as the new Cybertruck).
Tesla’s global electric vehicle sales have narrowly surpassed those of Chinese rival BYD. BYD Automobile announced Thursday that total EV sales jumped 41% last year, including 1.77 million units. The company is competing with Tesla to be the world’s top EV maker.
Production in the fourth quarter was 459,445 units, lower than total deliveries for the quarter, and full-year production was 1.77 million units, lower than annual sales.