Tesla Sales Decrease by 1.1% in 2024, Marking First Annual Decline in 12 Years

In a surprising turn of events, Tesla experienced its first annual sales drop in well over a dozen years. Despite a stock that has been on the rise, the electric vehicle giant saw a 1.1% decline in its sales for the year 2024.

Tesla’s global vehicle sales did see a small increase of 2.3% in the last quarter of 2024, thanks to attractive deals like 0% financing, free charging, and affordable leases. However, this uptick wasn’t enough to offset the slow start of the year, resulting in total deliveries of 1.79 million vehicles, slightly less than the 1.81 million sold in 2023 as the demand for electric vehicles eased in markets like the U.S.

This marked drop in year-over-year sales is the first Tesla has seen since 2011, as analysis from Global Data reveals. Back in 2010, the company sold 1,306 vehicles, which dipped slightly to 1,129 the following year.

The boost in sales during the final quarter came at a price. Analysts were expecting Tesla’s average sales price to hit just over $41,000, the lowest it has been in at least four years, signaling potential challenges for the company’s upcoming earnings report on Jan. 29, subsequently causing a 6.1% drop in Tesla’s stock value.

Elon Musk’s close ties to former President Donald Trump, including a substantial campaign donation and frequent visits to Trump’s Mar-a-Lago resort, have been speculated to positively influence Tesla’s prospects. Investors have been bullish on Tesla, driving the stock up more than 50% post-election in anticipation of favorable policies for electric vehicles under the new administration.

While Tesla had hoped for a 50% yearly sales growth, challenges such as an aging model lineup and increasing competition in key markets like China, Europe, and the U.S. have hindered these goals. Early adopters of electric vehicles are now well-served, and mainstream buyers are wary of factors like range, pricing, and infrastructure, which could limit future sales growth.