Tesla sees sales drop for the first time in a decade as Elon Musk reacts to Vegas Cybertruck explosion
WATCH: Elon Musk comments on the Tesla Cybertruck
X
Tesla has reported its first decline in annual deliveries in over a decade, whilst Chinese rival BYD continues to narrow the gap in the global electric vehicle market. It follows the horror blast in Las Vegas involving a Cybertruck which authorities are investigating as a potential terror attack.
The American automaker delivered 1.79 million vehicles in 2024, marking a 1.1 per cent decrease from the previous year and falling short of analyst expectations of 1.806 million units.
Meanwhile, Chinese competitor BYD saw its electric vehicle sales surge to 1.76 million units in 2023, achieving a 12.1 per cent increase through lower pricing and expansion into Asian and European markets.
The shift marks a significant moment in the electric vehicle industry, as Tesla's dominance faces mounting pressure from Chinese competition despite offering incentives including zero-interest financing to boost sales.
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Elon Musk's Tesla has seen sales fall for the first time in more than a decade
REUTERS/GETTY
Tesla's shares fell about four per cent following the announcement, reflecting investor concerns over the company's future growth prospects.
The brand, which is owned by billionaire Elon Musk, delivered 495,570 vehicles, falling short of analyst estimates of 503,269 units.
Production figures showed a concerning trend, with 459,445 vehicles manufactured in the period, representing a seven per cent decrease compared to the previous year.
The company's detailed delivery breakdown showed 471,930 units were Model 3 and Model Y vehicles. An additional 23,640 deliveries comprised other models, including the Model S sedan, Cybertruck and Model X premium SUV.
BYD is one of Tesla's main competitors in the electric vehicle market
REUTERSThe company faces mounting pressures from reduced European subsidies and a shift in US consumer preference towards lower-priced hybrid vehicles.
BYD's success has been particularly pronounced in its home market of China, where it sells 90 per cent of its vehicles. It has also appeared as one of Tesla's main competitors in the electric vehicle sector.
The Chinese manufacturer's total vehicle sales surged by more than 41 per cent in 2024 compared to the previous year.
This remarkable growth has been driven by intense price competition in the Chinese market and government subsidies encouraging consumers to switch to electric vehicles.
Tesla remains the UK's largest all-electric vehicle manufacturer
TESLABYD's December performance was particularly strong, with 207,734 EVs sold in the final month of the year.
Tesla's sales report comes just one day after a Tesla Cybertruck exploded outside of the Trump Hotel in Las Vegas, Nevada, which killed the driver and injured seven others.
The driver has been identified as US Army veteran Matthew Livelsberger of Colorado Springs, who had rented the vehicle in Colorado.
Elon Musk wrote about the incident on social media site X, saying: "We have now confirmed that the explosion was caused by very large fireworks and/or a bomb carried in the bed of the rented Cybertruck and is unrelated to the vehicle itself."
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The FBI is currently investigating the Cybertruck explosion outside the Trump Hotel
REUTERS
The Tesla CEO added that "all vehicle telemetry was positive at the time of the explosion."
Police have confirmed that there is "no definitive link" between the Tesla Cybertruck explosion in Las Vegas and the ramming attack in New Orleans.
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