- After enjoying years of growth, Tesla experienced a decline in sales and deliveries
- Tesla’s market share in the U.S. electric vehicle (EV) market dropped below 50%
- U.S. registration data for Tesla’s sales are yet to be disclosed
In 2024, Tesla saw a shift in its sales and delivery trends as it recorded a decrease after several years of consistent growth.
On a global scale, Tesla delivered approximately 1,789,226 vehicles throughout 2024, with a production output of around 1,773,443 vehicles. These numbers reflect a decrease compared to the 1,808,581 deliveries and 1,845,985 vehicles produced in 2023.
In 2024, there was a marginal decline of just over 1% in deliveries and a nearly 4% drop in production. Despite this, Tesla achieved a record delivery of 495,570 vehicles in the fourth quarter.
Contrasting with the positive results of 2023, where Tesla experienced a significant surge in sales and deliveries, the company faced challenges in 2024. China’s BYD made gains on Tesla in the global market in 2023.
Tesla CEO Elon Musk at Cybercab event (screenshot) – Oct. 2024
In 2023, Tesla’s CEO, Elon Musk, became more involved in political matters, impacting the company’s public image and possibly affecting sales growth. Market data suggested a connection between Musk’s actions and Tesla’s sales performance.
Despite implementing price cuts, Tesla’s share of the EV market in the U.S. decreased to around 50% in 2023. With overall EV sales projected to rise by 20% in 2024, Tesla could face further market share erosion. The company continued price adjustments in 2024, including positioning the Model Y below the Model 3 due to changes in EV tax credits.
The Model 3 and Model Y remained Tesla’s primary models, with other models contributing a smaller portion to the company’s global production and delivery numbers.
2024 Tesla Model Y. – Courtesy of Tesla, Inc.
It remains uncertain if Tesla experienced a similar sales decline in the U.S. for the entire year of 2024. Data up to October indicated a decrease in sales compared to the same period in 2023. Official U.S. sales figures are awaited, which will provide clarity on Tesla’s performance in the market.
While Tesla faced challenges in 2024, the company’s ability to adapt to market dynamics and consumer preferences will be crucial in determining its future sales trajectory.