Tesla Plunges 7% After Worst Sales Figures in a Decade
Tesla’s stock tumbled on Thursday following news that the company’s annual vehicle sales declined for the first time in over a decade, despite a record-setting fourth quarter.
Tesla reported selling 1.79 million vehicles in 2024, falling slightly below 2023’s total and missing analysts’ expectations. This has prompted investors to reassess their positions.
Tesla’s shares dropped 4.5%, trading at $385.72. While the stock had surged 63% over the year, the final quarter saw deliveries of 495,570 vehicles, short of the 512,277 projected by analysts. To achieve its goal of modest annual growth, Tesla would have needed to deliver nearly 515,000 vehicles in Q4.
This sales dip comes amidst subdued consumer demand for electric vehicles (EVs), a challenge exacerbated by former President Trump’s efforts to reduce incentives for EV buyers.
Challenges in 2024
Tesla faced several setbacks last year, including a fire at its Berlin factory, shipping delays, and a slowdown in EV sales across the industry. The company noted that demand for its fully electric vehicles is caught between two significant growth waves.
In April, Tesla reduced its workforce by over 10%, including sales staff. Despite these cuts, the automaker expressed confidence in October about achieving modest delivery growth for the full year.
Outlook for 2025
Looking ahead, Elon Musk told investors during Tesla’s latest earnings call that the company anticipates 20%-30% growth in 2025. This projection is partly fueled by plans to launch a more affordable vehicle in the first half of the year and advancements in the company’s autonomous driving technology.
Details on the new vehicle, including its design and pricing, remain sparse, leaving investors eager for further announcements.

