Tesla's annual delivery volume has declined for the first time, facing demand challenges for older models
Tesla's annual delivery volume in 2024 saw its first decline, despite achieving a record high in deliveries in the fourth quarter. Weak demand for older models, intensified market competition, and the absence of certain European subsidy policies are the main influencing factors. Tesla's stock price fell by 3%. The total annual delivery volume was 1.79 million vehicles, a year-on-year decrease of 1.1%. Analysts expect that market demand may rebound as the Federal Reserve lowers interest rates in 2025
According to the Zhitong Finance APP, in 2024, Tesla's (TSLA.US) annual delivery volume saw a decline for the first time, despite achieving a record high in deliveries in the fourth quarter, clearly indicating weak market demand for older models.
After the market opened, Tesla's stock price fell by 3%. Throughout the year, increasingly fierce market competition, the absence of certain European subsidy policies, and weak consumer spending in China became the main factors affecting Tesla's delivery volume.
According to a report by data research company JATO Dynamics, in October 2024, Tesla's registrations in Europe decreased by 24% year-on-year. The Škoda Enyaq SUV from the Volkswagen Group performed strongly in the European market, surpassing the Tesla Model Y to become the best-selling electric vehicle in the region.
To stimulate market demand, Tesla lowered vehicle prices and offered more incentives, but this also compressed its automotive sales profit margins last year. However, Wall Street analysts expect that market demand may rebound as the Federal Reserve lowers interest rates in 2025.
In the fourth quarter of 2024, Tesla delivered 471,930 Model 3 and Model Y vehicles, as well as 23,640 other models, including the Model S sedan, Cybertruck, and Model X luxury SUV. In the same quarter, its vehicle production was 459,445 units. In the three months ending December 31, 2024, Tesla delivered a total of 495,570 vehicles, slightly below the 503,269 vehicles predicted by 15 analysts surveyed by LSEG.
Looking at the annual data, Tesla's total delivery volume in 2024 was 1.79 million units, a year-on-year decrease of 1.1%, lower than the 1.806 million units predicted by 19 analysts surveyed by LSEG