Tesla's Sales Slip Amidst Rising Competition and Softening EV Demand

Tesla's Sales Slip Amidst Rising Competition and Softening EV Demand

Tesla, the trailblazer of the electric vehicle (EV) revolution, experienced a sobering reality in 2024: a decline in both production and deliveries. This marks a significant shift for the company that once dominated the EV landscape, facing a formidable wave of competition from both established automakers and emerging players. Production and Delivery Slippage Tesla produced 1.77 million vehicles in 2024, a 4% decrease compared to the previous year. Deliveries also dipped, reaching 1.79 million, a 1% decline from 2023. While the fourth quarter witnessed a record 495,570 vehicles delivered and 11 GWh of energy storage deployed, this late-year rally proved insufficient to offset the overall annual decline. This shortfall fell short of Wall Street expectations, leading to a 5% drop in Tesla's stock price. The Rise of Competition CEO Elon Musk had forewarned of increased competition and softening demand for EVs, and 2024 bore out his predictions. Traditional automakers, such as Ford, Gener…