Tesla reports lower sales in 2024

Tesla, one of the most iconic electric car brands of recent years, has reported an unexpected drop in sales for the first time.

Tesla reported the first full-year drop in sales in its history as a public company, as increased competition and slowing demand for electric vehicles hit its results.

— CNN (@cnn.com) 2025-01-02T17:14:08.771Z

Tesla has announced an annual drop in sales, the first since its IPO, perhaps marking the start of a new phase for the company.

At 1% down on 2023, this slowdown marks a turning point for the company after years of sustained growth. According to experts, this decline can be explained by increased competition and a drop in demand for electric vehicles.

Once the undisputed benchmark for electric vehicles, Tesla is now facing fierce competition from numerous automakers who, having caught up, are now offering products that are increasingly competitive and viable against Tesla’s.

Tesla now faces a formidable competitor in one of its key markets, particularly with Chinese rivals such as BYD, whose popularity continues to grow in China.

This decline certainly marks a new chapter for the company, which will have to evolve in a changing market with diminishing demand.

Tesla shares reacted to the post with a drop of over 3%. This decline comes after a period of rise observed during the election of Donald Trump, an ally of Tesla CEO Elon Musk, who had invested millions of dollars in the election campaign.