Lower-than-anticipated Tesla sales in Q4 2024 mark the first annual decline in sales for the company since 2012.
Tesla, the leading electric vehicle (EV) manufacturer, reported slightly lower vehicle sales in Q4 2024 than anticipated, marking the first decline in quarterly sales since at least 2012. Despite this setback, the company saw a significant increase in the business of stationary storage systems.
In Q4 2024, Tesla sold 495,570 electric vehicles, a new quarterly record. However, this figure was approximately 20,000 fewer than in 2023, with the decline primarily due to a decrease in Model 3 and Model Y deliveries. The total number of Model 3 and Model Y sold in Q4 2024 was slightly over 1.7 million, a figure 35,000 fewer than in 2023.
The sales dip can be attributed to several factors. Increased competition in the EV market, especially in the US, pressured Tesla’s sales momentum despite the continued dominance of Model 3 and Model Y. A shift in production volumes and possibly supply chain or capacity adjustments also affected total output, leading to a decrease of about 72,500 units year-over-year.
The Model Y, Tesla’s best-selling vehicle globally, faced internal competition from refreshed versions of other Tesla models such as the Model S Plaid, potentially affecting the Model 3/Y sales mix. Additionally, market conditions, including geopolitical tensions and trade policies, may have influenced Tesla’s ability to maintain previous growth rates despite expanding factories like the Gigafactory in Shanghai.
On the brighter side, Tesla's stationary storage systems business saw strong growth in Q4 2024, with newly installed capacity reaching a record of 11 gigawatt-hours. The total installed capacity for stationary storage systems in 2024 was 31.3 gigawatt-hours, more than double the amount in 2023. This significant increase underscores Tesla's commitment to renewable energy solutions and its growing influence in the energy storage market.
Following the announcement of Q4 2024 results, Tesla's stock fell by nearly 7% to around 375 dollars. The decrease in vehicle sales, while disappointing, may have contributed to the stock drop. However, the company's continued growth in the stationary storage systems sector offers a promising outlook for the future.
[1]: Source: Tesla's Q4 2024 Vehicle Production and Delivery Update [2]: Source: Tesla's Q4 2024 Earnings Call Transcript [3]: Source: Tesla's Q4 2024 Delivery and Production Breakdown [5]: Source: EV Sales Data by Model and Manufacturer, Q4 2024
Despite the decrease in quarterly electric vehicle sales for Tesla in Q4 2024, the company experienced a significant increase in the business of stationary storage systems, with newly installed capacity reaching a record of 11 gigawatt-hours. This growth in the technology sector highlights Tesla's expanding influence in the energy storage market.
