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Tesla’s global vehicle sales experienced their first decline in a decade during 2024, dropping 1.1 per cent to 1.79 million vehicles from 1.81 million in 2023. The disappointing figures triggered a 6 per cent decline in the company’s share price, erasing more than £80 billion from its market capitalisation.
The Texas-based electric vehicle manufacturer, under Elon Musk’s leadership, fell short of Wall Street’s expectations amidst intensifying competition from Chinese rivals and dampening global demand. The company’s previous ambitious target of 50 per cent annual growth, set in 2022, has proven unattainable in the face of mounting market pressures.
Chinese automotive giant BYD demonstrated remarkable performance, reporting total electric vehicle sales of 1.76 million units in 2024. The Shenzhen-based manufacturer achieved a record-breaking December, delivering 207,734 vehicles, bolstered by government subsidies and aggressive pricing strategies in its domestic market.
Tesla’s product mix revealed a heavy reliance on its more affordable Models 3 and Y, with only 23,640 units sold of premium vehicles, including the Models X and S, alongside the newly launched Cybertruck. The company faced additional scrutiny following a recent Cybertruck explosion outside a Trump hotel in Las Vegas, though Musk attributed the incident to external factors rather than vehicle defects.
Market analysts remain divided on Tesla’s outlook. Daniel Ives of Wedbush maintains a bullish stance, emphasising Tesla’s position as a disruptive technology leader rather than merely an automotive manufacturer. However, William Stein from Truist Securities expresses concerns about future sales volumes and the impact of continued price discounting on financial performance.
Tesla shares concluded trading at $379.28, marking a significant decline from December’s peak of $479.86. The stock emerged as the poorest performer on the S&P 500, while BYD’s shares in Hong Kong fell 4.1 per cent to HK$271.10.
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