Tesla shares plunged following disappointing fourth-quarter delivery numbers, as its full-year electric car sales posted the first annual decline in its history.
tesla recorded a record number of deliveries in the fourth quarter, but did not meet market expectations, which provokeda 6% drop in its share price on Thursday. The company’s full-year delivery figure marked the first annual decline in its history, underscoring the challenges facing electric vehicle (EV) makers amid a slowdown in global consumer demand. .
The first annual drop in deliveries
Tesla announced quarterly deliveries of 495,570 vehicles and the deployment of 11.0 gigawatt hours (GWh) of energy storage products in the final quarter of 2024, both record figures.
According to the website of Tesla, Model 3 and Model Y They involved 471,930 deliveries, with production reaching 436,718 units. Other models, such as the Model X, Model S and Cybertruck, recorded combined deliveries of 23,640 units.
However, delivery figures fell short of analysts’ forecastswhich had anticipated more than 510,000 units. Deliveries for the entire year amounted to 1,789,226 vehicles, which represents the first annual decrease on record, compared to 1.81 million in 2023.
Elon Musk expects EV deliveries to grow 20% to 30% in 2025
Tesla has forecast “slight growth” in vehicle deliveries by 2024, while its CEO, Elon Musk, expects car deliveries to grow between 20% and 30% in 2025. Energy storage deployment of the company throughout the year reached 31.4 GWh, more than double that of 2023, aligning with its expectations.
Despite the disappointing delivery results, investors are expected to focus on Tesla’s revenue growth trajectory and profit margins when the company reports its fourth-quarter results on January 29.
Cybertruck achieves positive gross margin for the first time
In its third quarter earnings call, Tesla highlighted that Cybertruck production had achieved a positive gross margin for the first time. Revenue from its energy business grew 52% annually, reaching a record gross margin. The company also reiterated its plans to introduce affordable electric vehicles, production of which will begin in the first half of 2025 and whose volume is expected to grow by 50%.
Trump’s election campaign
Tesla shares up 63% in US markets last year, despite the decline at the end of the year. The share price reached an all-time high of $489 (€502) on December 18, almost double since the former US president Donald Trump won the elections on November 5.
Investors expected Tesla to receive favorable treatment from the Trump Administration, given Elon Musk’s support for Trump in his election campaign.
In November, Bloomberg reported that President-elect Donald Trump’s transition team plans to prioritize establishing a new federal framework for the regulation of self-driving cars at the Department of Transportation, potentially relaxing rules for autonomous vehicles.
Optimism about Tesla’s Robotaxi
This news sparked optimism towards the Tesla’s ambitious Robotaxi businessconsidered a fundamental component of the company’s growth strategy.
Although the administration of Trump could eliminate subsidies for electric vehicles in the USwhich could affect Tesla’s profit margins, this could pose greater challenges for its competitors. Ironically, the withdrawal of government support could benefit Tesla relative to its rivals. However, these assumptions depend on the actual implementation of these policies, leaving Tesla stock open to speculation.
Challenges from Chinese rivals
In addition to weakening demand in electric vehicle markets, Tesla faces a increasing competition from Chinese automakers. China’s largest brand, BYD, reported full-year deliveries of 4.3 million passenger vehicles in 2024, including 2.5 million hybrids and 1.76 million pure EVs. Tesla applied discounts and other incentives to compete in the Chinese market in early 2024. However, these measures significantly reduced their profit margins.
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