Tesla Faces First Delivery Decline: Navigating New Challenges in 2024
In a surprising turn of events, Tesla has reported a decline in vehicle deliveries for the first time since it began producing mass-market cars. This decline marks a significant moment in the company’s history, signaling potential challenges in reaching new customers. Despite the much-anticipated debut of the Cybertruck, Tesla’s first new model since 2020, the company saw a drop in growth during its initial full year on the market.
- Global vehicle deliveries in 2024: 1.77 million (down 2.2% from 1.81 million in 2023)
- 85,133 deliveries consisted of “other models,” including the Model S, Model X, and Cybertruck
Tesla’s stock experienced a slight dip of about 2% in pre-market trading following the news.
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This decline is particularly striking given Tesla and CEO Elon Musk’s long-standing promotion of a 50% annual growth target. In recent years, even with aggressive price cuts, Tesla has struggled to meet this ambitious goal. The decrease in 2024 marks the first annual sales drop since the launch of the Model S back in 2012.
Tesla had cautioned investors at the start of last year that growth might be “notably lower” as it transitions between “two major growth waves.” In alignment with this prediction, Tesla executed significant layoffs—over 10% of its workforce—in April as part of a restructuring effort to refocus on developing Musk’s vision of a fully-functioning robotaxi.
However, not all plans went ahead as anticipated. The company decided to halt its project to produce a $25,000 electric vehicle, aiming instead to introduce new models built on existing production lines. These upcoming vehicles are expected to be more affordable than current offerings starting at around $40,000, although precise pricing details remain undisclosed.
