Tesla stock slides on Q4 delivery miss, first yearly sales decline

Published On Jan 2, 2025, 10:26 AM

Tesla's stock has taken a significant hit following a disappointing fourth-quarter delivery performance, where it delivered 471,930 vehicles—falling short of the expected 510,000. This disappointment marks the first annual sales decline for the company, with total deliveries for 2024 at 1.78 million, slightly below the previous year. The main causes behind the decline appear to be increased competition and economic factors affecting demand. While the immediate reaction has been negative, some analysts believe Tesla will rebound in 2025 with growth in deliveries and expanded product offerings.

Stock Forecasts

TSLA

Negative

Despite short-term declines, Tesla remains a leader in the EV industry with plans for growth through new vehicle launches and advanced technologies like full self-driving. However, the recent delivery numbers and competition from companies like BYD present short-term challenges.

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Shares of the company fell 3.5% before the bell, in a sign of investor worries over the challenges facing CEO Elon Musk, who expected promotions including zero-interest financing to power a "slight growth" in deliveries in 2024. Reduced European subsidies, a shift in the U.S. toward lower-priced hybrid vehicles and tougher competition from China's BYD have pressured Tesla. In response, Musk pivoted Tesla to self-driving taxis and backed President-elect Donald Trump with millions of dollars in campaign donations in hopes that it could bring regulatory relief for the company.