Tesla recently announced its first yearly decline in vehicle deliveries, attributing it to fewer electric vehicle deliveries expected in the fourth quarter and lackluster demand for its older model lineup despite incentives.
Concerned investors caused the company’s stock to drop 3.5%, highlighting challenges faced by CEO Elon Musk. Musk’s strategy to offer zero-interest loans is aimed at boosting vehicle deliveries in 2024.
Factors like subsidy cuts in Europe, shifting trends towards lower-cost hybrid cars in the US, and rising competition from Chinese maker BYD are adding pressure on Tesla.
In response, Musk is steering Tesla towards self-driving taxis and supporting President-elect Donald Trump to ease regulations on the company. Tesla delivered 495,570 vehicles in the last quarter, falling short of expectations.
The company delivered 471,930 Model 3s and Model Ys, along with other models like the Model S sedan, Cybertruck, and Model X premium SUV. Production volume for the quarter was 459,445 units.
Analysts predict a slight decline in vehicle deliveries in 2024, with Tesla expected to focus on cheaper car models and the Cybertruck to boost sales in the short term.
Despite a rise in Tesla’s stock price last year, the company’s car sales margins faced challenges due to pricing and incentives. However, with expectations of increased demand post Federal Reserve interest rate cuts in 2025, Tesla remains optimistic for the future.
Source: www.theguardian.com