Tesla sees first decline in global annual sales in over 9 years
(MENAFN) Tesla experienced its first decline in global annual sales in at least nine years, with a 2.3 percent increase in deliveries during the final quarter not enough to offset a slow start to 2024. Despite efforts like 0 percent financing, free charging, and low-priced leases, the company’s total deliveries from October to December reached 495,570 vehicles, bringing the annual total to 1.79 million. However, this marked a 1.1 percent drop compared to the 1.81 million vehicles sold in 2023, as demand for electric vehicles (EVs) slowed both in the U.S. and internationally.
The fourth-quarter uptick in deliveries came at a cost, as analysts had expected Tesla’s average sales price to decrease to just over USD41,000, the lowest in at least four years. This price drop is likely to have an impact on Tesla's financial results for the quarter, with the company scheduled to announce its earnings on January 29.
Tesla had previously predicted sales growth of 50 percent per year, but this ambitious target faced challenges, particularly due to an aging model lineup and growing competition in key markets like China, Europe, and the U.S. In the U.S., many early adopters of EV technology already own electric vehicles, while mainstream buyers are still hesitant due to concerns about range, cost, and finding charging stations for long trips.
This market slowdown highlights the increasing difficulty for Tesla to maintain rapid growth as it faces heightened competition and market saturation, especially as the electric vehicle market matures and consumer preferences shift.
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