In the fourth quarter of 2024, Tesla, led by Elon Musk, faced challenges as its vehicle deliveries fell short of expectations. This marks the first year-over-year decline since the company began mass-producing cars in 2012. Tesla delivered 1.79 million vehicles globally in 2024, a 1.1% decrease from the 1.81 million delivered in 2023. The company also produced 1.77 million vehicles during the same period. The full financial results will be announced at the end of this month, on January 29th.

The Cybertruck, Tesla's first major new model since 2020, was unveiled last year after years of development. However, it did not significantly boost the company's overall growth and achieved limited success in the market. In comparison to the strong sales figures of more affordable models like the Model 3 and Model Y, these vehicles made only a minor contribution to the annual delivery numbers.

Tesla's performance in the fourth quarter of 2024 followed a similar pattern. In the last quarter of 2024, Tesla delivered 495,570 vehicles, slightly higher than the 484,507 vehicles delivered in the same period in 2023, but still below analysts' expectations of around 505,000 vehicles. Specifically, Tesla produced 436,718 Model 3 and Model Y vehicles in the fourth quarter and delivered 471,930. For the entire year, the company produced 1.67 million Model 3 and Model Y vehicles and delivered 1.70 million.

During the quarter, other models produced 22,727 vehicles, bringing the total production for the fourth quarter to 459,445 vehicles, which also failed to exceed forecasts. This decline in deliveries contrasts sharply with Tesla's rapid expansion over the past few years. Historically, Tesla has been able to achieve an annual growth rate of about 35%, but despite continuous price cuts and other measures to stimulate electric vehicle demand, the company's 50% growth target seems increasingly out of reach.

Tesla's performance comes at a time when the electric vehicle market is becoming significantly more competitive. Traditional automakers such as General Motors, Ford, and Volkswagen, as well as emerging Chinese companies like BYD, are rapidly expanding their electric vehicle offerings. This influx of new competition is putting pressure on Tesla's market share, particularly in regions like Europe and China. In Europe, Tesla's sales have seen a significant drop, with vehicle registrations declining by 14% from January to November 2024. Similarly, in China, Tesla's growth has fallen short of expectations.