Reality is starting to bite for Tesla and Elon Musk. Tesla faces a rare setback as its 2024 vehicle delivery numbers reveal the first annual decline in over ten years after years of massive growth. Despite aggressive end-of-year financing and leasing deals, the EV giant only sold 1.79 million vehicles globally in 2024, falling short of the 1.81 million delivered in 2023. The unexptected drop underscores mounting challenges for the Elon Musk-led company amid intensifying competition and softening demand in key markets.
From a brand point of view this shouldn’t be surprising. Musk has gone from the hero of the climate conscious crowd to a right wing blow hard, so he’s been alienating Tesla’s core customer base. You hear some people saying they wouldn’t be caught dead in a Tesla. Meanwhile he’s cetainly picking up some customer from consumers on the right who may never have considered an EV, but that may not make up for losses in once-loyal customer bases.
The final quarter of 2024 failed to meet expectations, compounding Tesla’s woes. Deliveries for Q4 totaled 495,570 vehicles, falling short of the 512,277 units analysts had projected. The gap underscores the difficulties Tesla faces in sustaining the meteoric growth that has characterized its recent history.
The shortfall is particularly stark given the company’s attempts to drive demand with heavy promotional campaigns, including discounts and financing incentives aimed at boosting sales in December. These efforts, while impactful in the short term, did not suffice to meet targets.
Competition is also a huge issue. EV fans now have many more options, and those brands aren’t led by someone who craves attention and relishes in pissing people off. Tesla’s decline comes amid a fiercely competitive EV market that has seen traditional automakers ramp up their electrification efforts. Brands like Ford, General Motors, and Hyundai have launched aggressive campaigns to capture market share in segments once dominated by Tesla. Rivals like Lucid Motors and legacy automakers like Mercedes-Benz are increasingly targeting Tesla’s high-end market. It’s a terrible sign for Tesla that sales for the flagship Model S and Model X are also starting to lag. Then you also have the Chinese attacking at the low end of the market.
Is Tesla in trouble? It will remain a major player, but the glory days may be behind this brand. 2025 is a big year, though Musk seems to have other priorities.
