Tesla global sales decline for first time in more than a year

Tesla’s fourth-quarter sales results are out, and as expected, the results were mixed. On the bright side, the company set a new quarterly sales record. On the downside, the company missed expectations and sold fewer cars in 2024 than in 2023, posting its first annual sales decline in more than a decade amid growing competition in the global electric vehicle market. Not surprisingly, this resulted in a decline in the company’s stock price. Let’s break it all down.

See: Tesla Model Y Juniper comes with split front lights and rear light bar

First, Tesla delivered 495,570 vehicles in the fourth quarter of 2024. This is an improvement from the previous record quarter (Q3 2024) of 462,890 deliveries. However, analysts expect Tesla to deliver close to 500,000 vehicles. To match total sales in 2023, Tesla would need to deliver more than 510,000 vehicles in the fourth quarter, meaning it fell short of the numbers needed to avoid a year-over-year decline.

2024 vs. 2023: The numbers game

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As a result, Tesla failed to achieve its goal of delivering more than 1.8 million vehicles in 2023, and as of 2024, delivered exactly 1,789,226 vehicles. The breakdown of these numbers is particularly noteworthy: 1,704,093 of those deliveries came from Model Y and Model 3. This means that the Model S, Model X and the newly launched Cybertruck together account for less than 5% of Tesla’s total sales.

In addition to vehicle deliveries, Tesla’s energy business is also performing strongly. The company said it delivered a record 11.0 GWh of energy storage products in the fourth quarter of 2024. The company has yet to release financial results, which may shed further light on the brand’s performance. These will be announced after the market close on January 29.

Tesla stock faces continued pressure

Tesla’s latest sales report did little to stabilize the company’s ongoing stock price plunge. As of this writing, Tesla shares are down 6.8% on the day, capping a difficult week. Over the past five trading days, Tesla stock has fallen from a high of $465 per share to $375 per share.

It’s unclear what can stop the bleeding, at least in the short term. Maybe the alliance between Elon Musk and Donald Trump will work, but we’ll have to wait a little longer to see how it plays out.

Updated Model Y and new electric cars under $30,000

One factor working in Tesla’s favor is the upcoming launch of an updated version of its best-selling Model Y, codenamed Project Juniper. This updated model is expected to hit most global markets in the coming months, which should help boost sales and boost confidence as the company heads into 2025.

Read: Tesla exec confirms sub-$30K Model Q and 2025 product plans

Additionally, CEO Elon Musk expressed optimism about the company’s future, predicting sales will grow by more than 20% in 2025. In addition to this, a recent report from Deutsche Bank revealed that Tesla head of investor relations Travis Axelrod confirmed plans to launch a Tesla model by the first half of 2025 with a price tag of Low-cost cars under $30,000. With the launch of the affordable model alongside the refreshed Model Y, it could reignite Tesla’s hot sales momentum and help the company regain its footing in the crowded electric vehicle market.