Elon Musk-led Tesla, the biggest electric vehicle maker in the world, competing with the likes of China’s BYD and other seasoned companies in the industry, has once again started the new year with some bad news. In 2024, the company’s market share in the EV business dropped, and its overall sales also dropped at the beginning of 2024.
Tesla Sees a Drop In Its Deliveries
However, its fortunes changed as the year progressed further. Especially, as towards the end of 2024, the company soared and became a trillion-dollar company.
2025 appears to be a repeat of 2024, as the company has started on a negative note. As per reports, the Musk-led EV maker saw a drop in its annual deliveries in 2024. The company deliveries in 2024 were lower than the deliveries in 2023.
The company shares as a result of this news, also appear to have been placated. The share prices dropped significantly on Thursday, January 2.
The company delivered a total of 1.79 million units of cars in 2024. This is below the total deliveries, which stood at around 1.81 million in 2023.
This is the first time in over 13 years that the company has seen a slump in its overall annual deliveries.
Tesla does not make anything apart from pure electric vehicles, adding to its woes. In addition, an ostensible lack of ‘hardcore’ innovation in the recent past may have also played a role in the slump.
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The Tesla Problem
In addition, the total deliveries achieved in the last quarter stood below the expected mark of 500,000 cars. According to Tesla, the total deliveries stood at 495,570 EVs.
This once after a decade development has affected the company shares as well. This is largely being attributed to the slowdown in EVs in large, rise in competition from rivals like BYD and Geely.
In addition, a rise in demand for hybrid vehicles at reasonable prices has also played a role.
Tesla does not make anything apart from pure electric vehicles, adding to its woes. In addition, an ostensible lack of ‘hardcore’ innovation in the recent past may have also played a role in the slump.
The shares of Tesla dropped in value on Thursday.
By the end of the day, the shares of Tesla dropped below its venerated Rs 400 mark to Rs 379.28 per share. This came to pass after the company shares declined by a mammoth 6.08 per cent or USD 24.56. The company shares had closed on USD 403.84 in the previous session.
