Tesla annual deliveries fall for first time as competition hurts demand

Published On Jan 2, 2025, 9:07 AM

Tesla has reported its first annual decline in vehicle deliveries, handing over 1.79 million vehicles in 2024, which is a 1.1% decrease from 2023. Despite expectations of growth fueled by promotional incentives, the company fell short of its delivery targets due to increased competition, especially from cheaper hybrid models and rivals like BYD. The decline in demand was evident, with fourth-quarter deliveries also missing forecasts. Unfavorable market conditions are pressuring Tesla's profit margins, although analysts anticipate a potential recovery in demand in 2025 if interest rates are lowered.

Stock Forecasts

TSLA

Negative

The decline in deliveries raises concerns about Tesla's market position amid escalating competition. While there are expectations for a recovery in the following year, the immediate outlook suggests challenges. Investors might consider this a signal to reassess their positions in Tesla stock.

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