Last Thursday, January 2, Tesla published a report on the production and deliveries of vehicles for the fourth quarter of 2024 and the entire last year.
Total deliveries for the past quarter were recorded at 495,570. Total production for the fourth quarter of 2024 was 459,445. Total annual deliveries last year were recorded at 1,789,226. Total annual production in 2024 was 1,773,443.
In this case, it is noteworthy that Tesla recorded the first annual decrease in deliveries. In 2023, the corresponding indicator was fixed at 1.81 million, which exceeds the result of 2024. This tendency does not apply to quarterly figures. The company reported 484,507 deliveries for the fourth quarter of 2023. The figure for the same period in 2024 was higher.
Against the background of the publication of data on the results of Tesla’s operations, the value of the company’s shares fell by as much as 7% during trading on Thursday.
According to StreetAccount, the experts’ consensus forecast envisaged that the firm would report deliveries of 504,770 electric vehicles, including 474,000 Model 3 and Model Y cars, for the fourth quarter of 2024.
The media also reported that Tesla had sent out a company-compiled delivery consensus of 506,763 vehicles to some investors. These expectations were based on the results of a survey of 26 analysts.
A well-known independent Tesla researcher under the nickname Troy Teslike predicted deliveries of 501,000.
Deliveries are the closest approximation of sales reported by the firm but are not precisely defined in the company’s shareholder communications.
It is worth noting that at the end of 2024, Tesla securities were moving intensively along an upward trajectory. The value of the company’s shares showed an increase of 63%. In mid-December, the corresponding indicator reached a mark exceeding the previous record level observed in 2021. To a large extent, this dynamic is because the company’s chief executive officer Elon Musk is an active supporter of Donald Trump, who won the United States presidential election in November and will return to the White House in January. The political factor had a significant impact on Tesla shares. Elon Musk poured about $277 million to promote Donald Trump and other Republican candidates. The head of Tesla also spent weeks on the road campaigning in swing states.
It is worth noting that the beginning of 2024 was an unsuccessful period for the company in terms of its financial dynamic. In the first quarter, the value of Tesla shares fell by 29%. This downward dynamic of the company’s securities turned out to be the worst since 2022. At the beginning of 2024, Tesla made efforts to restore the sales indicator, which was weakening, despite the implementation of solutions such as price cutting and the launch of certain incentive offers for buyers. In April, as part of the earnings call for the first quarter, Elon Musk told investors that he expected sales to accelerate, but warned that the overall growth rate would slow from 38% in 2023.
Mr. Musk, who also runs SpaceX and xAI and owns social network X, has been tapped to co-lead an advisory group to the Donald Trump administration, which will seek to slash federal spending, personnel, and regulations.
Sam Fiorani, a vice president at industry research group AutoForecast Solutions, said in a media comment that Elon Musk’s foray into politics may have distracted his focus from core businesses. At the same time, it was noted that the degree to which investors or electric vehicle buyers care won’t be reflected in Tesla’s numbers until the first quarter.
In the relatively recent past, the company was actually the only automotive brand engaged in mass production of battery-electric vehicles. Over time, new players have emerged in this sector of the automotive market, which has led to a natural increase in competition. In the United States, companies such as General Motors, Ford, and Rivian have also launched the mass production of vehicles in the mentioned category. In China, BYD is a major player in the electric car-making area. In South Korea, Hyundai demonstrates a high intensity of activity in the production of electric vehicles. As for the European players in the global electric car market, in this case, the main competitors of Tesla are Volkswagen and BMW.
Elon Musk’s company continues to be one of the leaders in the electric vehicle manufacturing industry. The decline in deliveries does not negate Tesla’s strong market position. Also, the foreseeable prospects of the company as a whole are not pessimistic. At the same time, the firm is facing clear challenges generated by the current reality configuration in the electric car industry. In this case, increased competition is an important factor. It is also worth mentioning factors such as the reduction in European subsidies and the shift nowadays observed in the United States towards low-priced hybrid cars.
It is worth noting that Tesla’s activities are currently related not only to the production of electric vehicles. The company is also investing in humanoid robotics and chip development. Tesla also plans to produce a dedicated robotaxi and start a driverless ride-hailing service before 2027.
Against the background of the mentioned scale of activity, it is reasonable to assume that Elon Musk and the shareholders are gradually ceasing to perceive the company as just a car manufacturer. At the same time, in the context of the financial dimension of Tesla’s activities, sales of electric vehicles continue to be the main source of profits.
According to some experts, last year the company made a mistake by not presenting an electric car that differs from other products at a lower price. This statement is based on the thesis that the financial accessibility of goods is a critically important factor impacting their sales rates. The newest model from Tesla, which is the Cybertruck made of angular steel, has a price range starting at around $80,000.
In the European market, the company faced a decline in sales in the fourth quarter of 2024. In this case, the reason for the downward dynamic was the increase in the market share of competitors. It is possible that potential more price affordable electric cars could be a factor in strengthening Tesla’s position in Europe in terms of sales figures. From January to the end of November, the company sold 283,000 electric vehicles in this region. This indicator is about 14% lower than the figure recorded for the same period in 2023. The relevant data was published by the European Automobile Manufacturers’ Association, or ACEA. In November, Tesla sold 18,786 electric vehicles in the mentioned region. For the same period in 2023, the corresponding figure was around 31,810 cars.
Also in the fourth quarter of 2024, Tesla faced increased pressure in the Chinese market. Sam Fiorani stated that the Model Y is the second most popular model in the mentioned Asian country. At the same time, it was separately noted that the upward dynamic of sales of this car demonstrates a slower pace compared to the general degree of intensity of the corresponding process in the Chinese market. Sales of the Model Y in November in the Asian country showed an increase of more than 5%. Overall, sales of electric vehicles in China rose by 8% over the specified period.
It is also worth paying attention to the fact that currently electric car manufacturers based in an Asian country are on a trajectory of active development and intensive scaling. In this case, brands such as Chery, Li Auto, Jetour, LeapMotor, and Aito are meant, among others. The business of these companies is showing growth. BYD is actively setting up factories outside of China. This company also demonstrates high rates of export operations. BYD sold 1.76 million electric vehicles last year.
In total, sales of Tesla electric cars in China totaled more than 657,000 in 2024. This indicator showed an increase of 8.8% year-on-year. It is worth noting that the mentioned sales are record-breaking for Tesla in the history of its presence in the Chinese market. In December, the company sold 83,000 electric vehicles in the Asian country. This indicator increased by 12.8% compared to the November reading. China’s share in the company’s total sales in 2024 was 36.7%.
John Zeng, head of market forecast for China at London-based consultancy GlobalData, said Tesla’s record sales in the Asian country amid a drop in its worldwide deliveries reflected the global electric vehicle landscape. In the relevant context, it was noted that the Chinese market is the only major regional commercial space where robust growth is observed. The situation in other countries is currently characterized by such types of dynamics as slowdown or slide.
In the first 11 months of 2024, China accounted for 70% of global sales of electric and hybrid vehicles.
Moreover, in 2024, Tesla recorded the first-ever drop in annual shipments from its Shanghai factory. This production site was launched in 2020. The drop in shipments from this plant is a sign of increased competition in the Chinese market and a signal of sluggish consumer demand in the global electric vehicle market. In 2024, Tesla delivered 916,660 cars from its manufacturing site in Shanghai. This figure is 3% lower than the result of a year ago. The relevant data was published on Friday, January 3, by China’s Passenger Car Association. It is worth noting that the Shanghai production site is the company’s first factory outside the United States.
Shipments from the mentioned plant demonstrated a downward dynamic, despite many year-end incentives. It is worth noting that shipments from the Shanghai factory in December amounted to 93,766 Model 3 sedans and Model Y crossovers.
In North America, Tesla continues to hold the lead. In the fourth quarter of 2024, the company launched several incentive measures for buyers to boost sales. One of these measures was the cutting of prices, even for the most popular Model Y. At the same time, the company was faced with a buildup of inventory.
Also in the fourth quarter, Tesla stopped the operation of the Cybertruck assembly line for several days. It is possible that the company made this decision to avoid flooding the market with too many vehicles.
In 2024, Tesla downsized its global workforce. There was also a cut size of the company’s China sales team.
The mentioned facts of the firm’s activities indicate that Tesla is gradually beginning to respond to the circumstances of the current market reality. The company is seeing a weakening of the upward sales momentum. Against the background of this state of affairs, decisions are being made on cutting prices and other measures to stimulate consumer activity regarding Tesla products. It is still unknown whether market realities will cause a profound transformation of the company’s business model, but such a scenario does not belong to the category of impossible variants of the future for the brand.
In October, on an earnings call, Elon Musk announced that Tesla plans to offer lower-cost and autonomous vehicles to customers in 2025. The debut of the mentioned cars is expected to boost the company’s sales by 20-30% compared to 2024. It is worth noting that the realism of this goal as a kind of practical perspective is not high. In the relevant context, an important factor in the potential impact is the significant likelihood that Donald Trump will decide to roll back electric vehicle tax credits. In the summer, Elon Musk said that the relevant decision would hurt Tesla in the near future, but at the same time noted that the company’s competitors would face more negative consequences.
It is also currently expected that Donald Trump will loosen federal rules on self-driving cars. The implementation of the corresponding intention in the practical plane will definitely be good news for Tesla. In this case, the company will face a regulatory environment that is more favorable as a kind of system of conditions for the materialization of the automaker’s ambitions related to the development of robotaxi. Tesla pays significant attention to the mentioned area of activity. Robotaxi, which in the past was identified by the collective consciousness of society as a kind of fantastic idea, may become commonplace in the passenger transportation industry in the future. If Tesla is successful in developing robotaxi, it will have a positive impact on its market position and financial performance.
Currently, the company’s activities, from the point of view of what can be roughly described as its production ideology, are directed towards the future of the automotive market, which is gradually becoming a reality. The current tendencies hint that self-driving electric vehicles will become the most common over time. It is possible that other or new energy sources will be most popular over time, but this is a strictly hypothetical possibility.
The company also reported on an annual record for its energy business. In 2024, Tesla deployed 31.4 gigawatt hours, including 11 gigawatt hours in the fourth quarter. In the first nine months of the mentioned year, the company had already managed to deploy more energy products than in the whole of 2023.
This week it became known that Elon Musk donated 268,000 Tesla shares to unnamed charities. The relevant information is contained in a regulatory filing. Currently, Mr. Musk owns about 12.8% of the company’s shares. He made the donation as part of his year-end tax planning to certain charities that have no current intention to sell such stock.
The mentioned donation follows a similar pattern in 2022. At that time, Elon Musk donated Tesla shares worth $1.95 billion. In 2021, he donated about $5.74 billion to the Musk Foundation, his non-profit organization.
According to the stock’s last closing price, the amount of Elon Musk’s latest donation was about $108.2 million.
The Musk Foundation offers grants for various purposes, including the development of safe artificial intelligence for the benefit of humanity.
According to media reports, Elon Musk is currently the richest person in the world. His net worth is $408.3 billion.
As we have reported earlier, Tesla Hits $1 Trillion Market Value.
