For the first time since 2011, sales of Elon Musk’s electric car Tesla will decline by 1.1% in 2024, news agency Associated Press reported, citing the company’s sales statistics.
Tesla’s stock price fell 6.1% after the company announced its sales figures on Thursday. Prior to this, the stock had risen about 50% following the victory of Donald Trump, a close ally of Elon Musk, in the US presidential election.
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This is despite the automaker offering 0% financing rates, free charging and low-cost leases, and was only able to increase sales by 2.3% in the final quarter of the year. The number of vehicles sold from October to December was 495,570, and the total for the year was 1.79 million.
It wasn’t enough to make up for his lackluster start to the year. Cumulative sales in 2023 were 1.81 million units.
Most were the smaller, cheaper Model 3 and Model Y, with only 23,640 of the more expensive models such as the Model X, S, and new Cybertruck.
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This is the first decline in sales since 2011, according to the report, which cited data from analytics firm Global Data.
The decline comes as the company’s model lineup ages and competition intensifies in China, Europe and the United States. For example, China’s BYD saw sales increase by 41% last year, selling 1.77 million EVs.
Reasons why sales decreased
Another reason may be that Musk supports Trump in the US presidential election, as environmentally conscious buyers typically lean toward the Democratic Party, the Associated Press reported. It is said that there is a possibility that the purchasers of the department will be turned away.
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The report also cited Wedbush financial analyst Daniel Ives’ belief that the stock deserves more valuation based on the company’s promise to develop fully autonomous self-driving cars. It is quoted as saying that there is.
“We have never seen Tesla simply as a car company. Instead, we have always seen Musk and Tesla as a global powerhouse of disruptive technology,” he wrote. There is.
