Tesla reports first annual decline in EV sales since 2011

The company sold approximately 1.79 million units, marking a slight decrease from its 1.81 million sold in 2023.

Tesla reported its first annual drop in electric vehicle (EV) deliveries in over a decade, with 2024 sales totaling approximately 1.79 million units, a slight decrease from 1.81 million in 2023.

Although the company achieved a record 496,000 vehicle deliveries in the fourth quarter, the number fell short of Wall Street's expectations, which had forecast over 500,000 units, as reported by the Washington Post.

This year-over-year decline in global sales marks Tesla's first since 2011. The company had initially sold 1,306 vehicles in 2010, but saw a minor drop to 1,129 units the following year, as reported by the Associated Press.

Its ambitious prediction in 2022 that sales would grow by 50% annually has faced obstacles, including an aging vehicle lineup and rising competition in key markets like China, Europe, and the U.S. Analysts suggest that in the U.S., most early adopters already own EVs, while more mainstream buyers remain concerned about range, price, and charging infrastructure on long trips, according to the Associated Press.

In response to these challenges, Tesla plans to launch more affordable EVs in the first half of 2025, with expectations of 20% to 30% growth in vehicle sales for the next year, as CEO Elon Musk mentioned during the company’s 2024 earnings call.

Additionally, the company plans to introduce its self-driving robotaxi service by late 2025, a move that could be accelerated with regulatory support from the administration.