Tesla (NASDAQ:TSLA) reported a 1.1% decline in global sales in 2024, the first annual sales decline since at least 2015. Total deliveries for the year fell from 1.81 million vehicles as demand for EVs declined in the U.S. and other regions. In 2023, it will reach 1.79 million people.
Auto supply in the fourth quarter rose 2.3% from the previous quarter to 495,570 vehicles, and FactSet from Austin, Texas-based company Still Corp. said the number was higher than Wall Street’s expectations of 498,000 vehicles. It was revealed that it was lower. Analysts also noted that Tesla’s average selling price likely fell during the quarter to just over $41,000, the lowest in at least four years, which could have affected earnings. I am doing it.
Among Tesla’s challenges are an outdated lineup of vehicles and increased competition from startups and traditional companies in major countries such as China, Europe and the United States. High declines are associated with concerns about EV range, price, and charging infrastructure.
The company once regularly projected 50% annual sales growth, but relied on low-cost leases, free charging, and 0% financing to drive demand. But those discounts eroded Tesla’s industry-leading profit margins. Tesla shares were down 3% on Thursday morning, but are still up more than 50% over the past year. It is important to note that the fourth quarter earnings release is scheduled for January 29th.
This article first appeared on GuruFocus.
