Tesla reports 1.1% sales drop for 2024, first annual decline in at least 9 years

DETROIT — Tesla’s global sales rose 2.3% in the fourth quarter after a sluggish commence to the year that contributed the electric car business’s first year-over-year sales decline since at least 2015.

The annual decline for the Austin, Texas, business came despite offers such as 0% capital, free charging and low-priced leases.

Tesla delivered 495,570 vehicles from October through December, boosting deliveries to 1.79 million for the packed year. But that was 1.1% below 2023 sales of 1.81 million as overall demand for electric vehicles in the U.S. and elsewhere slowed.

The fourth-quarter boost came with a expense. Analysts polled by FactSet expected Tesla’s average sales worth to fall to just over $41,000 in the quarter, the lowest in at least four years.

That doesn’t bode well for Tesla’s fourth-quarter returns, which the business said it would announce on Jan. 29.

In 2022, Tesla predicted that its sales would develop 50% most years, but the prediction ran into an aging model lineup and increased competition in China, Europe and the U.S. In the U.S., analysts declare most early adopters of technology already have electric vehicles, and more mainstream buyers have concerns about range, worth and the ability to discover charging stations on longer trips.

The fourth-quarter deliveries fell short of Wall Street estimates. Analysts polled by data provider FactSet expected sales of 498,000 vehicles.

Tesla shares fell 3% at the opening bell Thursday, but shares are up more than 50% over the last 12 months, surging with the election win by Donald Trump.

Falling sales early in the year led to once-unheard of discounts for the automaker, cutting into its industry leading boost margins.

Competition from legacy and enterprise automakers is also growing as they try to nibble away at the business’s trade distribute.

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This narrative has been corrected to display that 2024 was the first annual sales decline in nine years.