Tesla's annual vehicle sales dropped for the first time in 2024 as it battled industrywide headwinds and increasing competition.
Elon Musk's electric automaker said on Thursday that it sold about 1.79 million cars in 2024, falling just short of the previous year's 1.8 million and rounding out a difficult year for electric vehicles overall.
During the fourth quarter, Tesla delivered 495,570 cars to customers. Analysts polled by Bloomberg had expected about 510,000. Shares fell by about 6% in early trading.
Despite falling short of analysts' expectations, Tesla's fourth-quarter deliveries increased by more than 11,000 vehicles over the same period in 2023.
But sales could get even tougher for Tesla and its competitors. President-elect Donald Trump has promised to end consumer tax credits, which effectively lower vehicle prices by up to $7,500. Sticker prices remain stubbornly high compared with traditional gas-powered options.
Many consumers have turned to hybrids over pure EVs. Hybrids can offer many of the gas savings and environmental benefits for less money and without any lifestyle changes.
Ominous signals in the market haven't shaken Musk, who has repeatedly hyped autonomy as the latest competitive edge for Tesla — and said that buying any other car would be a financial mistake.
Tesla has promised an autonomous "Cybercab" and a cheaper car model in the coming year.
