For the first time ever, Tesla has disclosed a reduction in vehicle deliveries, resulting in a fall in its stock price.
The electric vehicle (EV) manufacturer shared its Q4 2024 production and delivery report on Thursday, offering a detailed overview of its performance throughout the year. Tesla delivered 1.79 million vehicles in 2024, which is a marginal decline from the 1.81 million vehicles delivered in 2023. Following the report’s release, Tesla’s stock price experienced a 7 percent drop before regaining some traction, although it did not reach its prior levels.
As reported by *CNBC*, industry experts had forecasted that Tesla would deliver more than 500,000 vehicles in Q4 2024. Nevertheless, the company fell short, delivering only 495,570 vehicles. The reasons behind this shortfall remain uncertain, but Tesla is encountering escalating competition in the EV sector. Once the leading player, it now faces increased pressure from competitors such as Rivian, General Motors, Ford, BMW, and Volkswagen, all of which have significantly ramped up their EV production, heightening the competitive environment.
A further complication for Tesla is its product strategy. The company has not yet launched a more budget-friendly EV, opting instead to concentrate on pricier models like the Cybertruck. However, the Cybertruck has encountered notable obstacles, including six recalls just in 2024. Reports indicate that Tesla might have an excess supply of Cybertrucks, pointing to possible demand concerns. According to *Electrek*, the company has a rising inventory of ready-to-deliver Cybertrucks, while *InsideEVs* has observed an accumulation of used Cybertrucks in secondhand car dealerships.
Adding to Tesla’s difficulties, CEO Elon Musk has redirected much of his focus in the latter part of 2024 towards political endeavors, especially in support of Donald Trump’s presidential campaign. Musk is said to have contributed $277 million to Trump’s campaign and dedicated weeks to campaigning. Although this shift may have influenced Tesla’s stock performance, analyst Sam Fiorani told *CNBC* that the complete impact of Musk’s distractions may not be apparent until the company’s Q1 2025 earnings report.
As Tesla confronts these challenges, it is under increasing pressure to adjust to a swiftly changing EV market and tackle its internal issues.