For Tesla, 2024 production and delivery numbers represent a major milestone for the EV juggernaut and are the first year-over-year sales decline for the EV giant. In 2024, the company’s production was 1.77 million vehicles, down 4 percent from 2023, and its deliveries were 1.79 million vehicles, down 1 percent. However, even these sobering numbers cannot take away from Tesla’s record fourth quarter of 495,570 deliveries and 459,445 vehicles produced, the vast bulk being Model 3s and Ys. In Q4 Tesla also put in a record 11 GWh of energy storage, bringing its total to 31.4 GWh for the year.
Alas, the Q4 rally wasn’t enough to overcome the year’s challenges. In 2024, performance was weighed down by rising competition and lessening demand for Tesla’s maturing car lineup, as CEO Elon Musk warned, calling for aid in early 2023 and in December. Even the buzz about the late 2023 launch of the Cybertruck couldn’t arrest the downward trend. Tesla’s share price fell by about 5% to fall short of Wall Street’s expectations of 504,800 for Q4.
And the political climate is changing, further complicating Tesla’s outlook. As Donald Trump comes close to returning to the White House, Tesla now faces the possibility of losing a key incentive – such as the $7,500 EV tax credit that has been so crucial for affordability. At the same time, Musk’s proposed plans for a cheaper Tesla in 2025 or Cybercab, completely autonomous by 2026 are coping with technological and market challenges. There are also additional challenges to the global market. While China is still by far Tesla’s largest market, it has lagged behind domestic manufacturers such as BYD and continues to erode Tesla’s market share.
In general, Tesla’s success will depend on its ability to innovate, colonialize these headwinds, and adapt to political changes, while also keeping a razor’s edge on the increasingly crowded EV space. It remains to be seen whether Musk’s ambitious plans will revive Tesla’s growth.
