Tesla had a complicated year in 2024. With 1.79 million cars delivered, the manufacturer recorded its first annual decline in more than ten years, after reaching 1.8 million in 2023. A slight decline, certainly, but which symbolizes a turning point. Despite aggressive promotions and the expected launch of the Cybertruck, the Californian giant has failed to keep its promises.
Promotions fall flat
To save the furniture, Tesla tried everything in the last months of 2024. 0% financing, free months of access to autonomous driving and even rentals at knockdown prices: the manufacturer brought out the heavy artillery to seduce buyers. But with 495,570 deliveries in the fourth quarter, the count is not there. Analysts expected just over 503,000 vehicles.
This drop in sales can be explained by several factors. First, Tesla’s flagship models, like the Model 3 and the Model Y, are starting to show signs of running out of steam in the face of growing competition. In China, the local manufacturer BYD has exploded the counters with 4.25 million cars sold in 2024, including 1.76 million 100% electric. In Europe, Tesla lost ground to Volkswagen, whose Skoda Enyaq stole the show from the Model Y.
And even the highly anticipated Cybertruck, with its futuristic design, has not turned things around. Fewer than 50,000 units were delivered in 2024, well below expectations.
Despite this setback, Elon Musk maintains his legendary optimism. He promises growth of 20 to 30% for 2025 and counts on the development of autonomous taxis to revitalize Tesla. These “Cybercabs”, expected to cost less than $30,000, could hit the roads in two or three years. But between technical challenges and regulatory questions, there is no guarantee that this project will take off.
Furthermore, the regulatory landscape is becoming more hostile. In the United States, the Trump administration is considering eliminating tax credits for electric vehicles, a measure which had greatly boosted sales in recent years. In Europe, public aid is also being reduced, in favor of less expensive hybrid models.
In the meantime, Tesla must also deal with controversies surrounding its autonomous driving technologies. Under fire for accidents and ongoing investigations, the manufacturer is struggling to convince that its vehicles are really ready for a driverless future.
The decline in sales has not only cooled investors, but also fans of the brand. After years of breakneck growth, Tesla appears to be at a turning point. It remains to be seen whether Elon Musk will succeed in maintaining enthusiasm around his brand, or whether Tesla will have to adapt to an increasingly competitive market. One thing is certain: the company will no longer be able to rely on the strengths of the past.
🟣 To not miss any news on the WorldOfSoftware, , .
