TESLA SHARES SLIDE AFTER REPORTING FIRST-EVER ANNUAL DECLINE IN VEHICLE DELIVERIES
Tesla’s stock price took a hit on Wednesday after the company reported its first-ever annual decline in vehicle deliveries. The electric vehicle maker delivered 1.79 million vehicles globally in 2024, a 1.1% decrease from the 1.81 million cars sold in 2023.
This decline marks a significant departure from Tesla’s previous years of rapid expansion, where the company achieved an annual growth rate of approximately 35%. The news sent Tesla’s shares sliding 6.2% to $378.99 in after-hours trading.
The fourth-quarter deliveries also fell short of analyst expectations, with Tesla delivering 495,570 vehicles, slightly above the 484,507 delivered in the same period in 2023. The company’s production also declined, with 459,445 vehicles produced in the fourth quarter, down from the forecasted numbers.
Tesla’s failure to meet expectations has raised concerns among investors, particularly given the company’s ongoing price cuts and incentives aimed at stimulating demand. The increased competition in the electric vehicle market, particularly from traditional automakers like General Motors, Ford, and Volkswagen, has also put pressure on Tesla’s market share.
“Tesla’s delivery numbers were disappointing, and the company’s guidance for 2025 will be critical in determining the direction of the stock,” said Dan Ives, an analyst at Wedbush Securities.
Tesla’s CEO, Elon Musk, has been working to increase production and reduce costs, but the company’s ability to meet its ambitious targets remains a concern. The company’s overall financial results for the fourth quarter are expected to be released on January 29.
As the electric vehicle market continues to evolve, Tesla’s ability to adapt and maintain its market share will be crucial in determining the company’s long-term success. For now, investors will be watching closely for any signs of improvement in Tesla’s delivery numbers and financial performance.
TESLA’S DELIVERY NUMBERS: A YEAR IN REVIEW
- 2024: 1.79 million vehicles delivered (1.1% decline from 2023)
- 2023: 1.81 million vehicles delivered (40% increase from 2022)
- 2022: 1.31 million vehicles delivered (87% increase from 2021)
- 2021: 936,172 vehicles delivered (87% increase from 2020)
TESLA’S STOCK PRICE: A RECENT HISTORY
- January 2025: $378.99 (after-hours trading)
- December 2024: $405.50
- November 2024: $420.50
- October 2024: $435.50
Note: Stock prices may fluctuate rapidly and may be affected by various market and economic factors.
