Tesla Cybertruck Sales Disappoint: 2024 Deliveries Decline

Tesla's Vehicle Deliveries Decline in 2024

For the first time since 2012, Tesla experienced a year-over-year decrease in vehicle deliveries. The company delivered fewer vehicles in 2024 compared to the previous year, indicating challenges in expanding its customer base.

Sales Figures and Market Reaction

Tesla announced global deliveries of 1.77 million vehicles for 2024, representing a 2.2% decrease from the 1.81 million vehicles delivered in 2023. A portion of these deliveries, totaling 85,133 vehicles, were categorized as “other models,” encompassing the Model S sedan, Model X SUV, and the Cybertruck.

Following the announcement, Tesla’s stock price experienced a decline of approximately 5.4% as of 10:20 a.m. ET. This drop occurred after a period of gains linked to CEO Elon Musk’s involvement in the recent election.

A Shift from Previous Growth Trajectory

This decline marks a significant departure from Tesla’s historical performance. For years, the company and Elon Musk emphasized a target of 50% annual growth. While the company had begun to fall short of this goal in recent years, even with substantial price reductions, 2024 represents the first instance of an actual decrease in annual sales.

Tesla had previously cautioned investors that growth in 2024 might be “notably lower,” characterizing the period as a transition between “two major growth waves.”

Restructuring and Future Plans

Early in 2024, Tesla implemented a workforce reduction, laying off over 10% of its employees. This restructuring aimed to prioritize the development of a fully functioning robotaxi, a long-term vision of Elon Musk.

Simultaneously, plans for a $25,000 electric vehicle were abandoned. Currently, Tesla’s near-term product pipeline focuses on unrevealed models slated for production on existing lines.

Future Vehicle Offerings

These upcoming vehicles are anticipated to be more affordable than Tesla’s current lineup, which begins in the low $40,000 range. However, the extent of the price reduction remains unspecified.

Here's a summary of the key changes:

• A decrease in overall vehicle deliveries.
• The Cybertruck's limited impact on sales growth.
• A shift in company focus towards robotaxi development.
• The cancellation of plans for a more affordable vehicle.