For the first time in over a decade, Tesla's annual electric vehicle sales have declined.

Tesla has announced a decline in annual sales. Despite attractive incentives at the end of the year and the launch of the new Cybertruck pickup, the company struggled to attract a sufficient number of customers. The primary reason for this was the caution of buyers, who are concerned about high loan costs.

This was reported by Reuters.

Previously, Musk had predicted a slight increase in deliveries for 2024 and offered incentives, including interest-free financing and free fast charging, to boost sales. However, Tesla has been negatively impacted by reductions in subsidies in Europe, the popularity of hybrids in the U.S., and increased competition, particularly from the Chinese company BYD.

Tesla's stock has fallen by approximately 6%.

“The decline in deliveries reduces Tesla's growth rate and diminishes the overall market for the company’s ancillary services, including autonomous driving software, charging, and insurance. This slight downturn indicates that the current lineup of vehicles is nearing market saturation,” said Morningstar analyst Seth Goldstein.

Due to decreased demand for electric vehicles, Musk has shifted focus to developing a driverless taxi business, which is expected to enhance Tesla’s value. However, since autonomous driving technology is still under development, commercialization may only be possible in a few years. Analysts suggest that the company needs to rely on the success of the Cybertruck and the launch of cheaper versions of existing models to achieve sales growth of 20–30% by 2025.

In 2024, Tesla delivered 1.79 million vehicles, which is a 1.1% decrease compared to the previous year and below the forecasted 1.806 million cars.

Meanwhile, Tesla maintained its leadership compared to BYD, which increased electric vehicle sales by 12.1%, reaching 1.76 million units due to competitive pricing and an expanded presence in Asian and European markets.

Background. Earlier, Mind reported that the global electric vehicle market saw a growth of 34% from January to September, with sales in China increasing by 29% during the same period.