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Tesla's annual sales dropped for the first time in 2024 as it battled industry-wide headwinds and increasing competition.
Elon Musk's electric automaker sold about 1.78 million cars in 2024, falling just short of the previous year's 1.8 million and rounding out a difficult year for electric vehicles overall, the company said Thursday.
During the fourth quarter of 2024, Tesla delivered 495,570 cars to customers. Analysts polled by Bloomberg had expected about 510,000. Shares fell about 3% in early trading.
Sales could get even tougher for Tesla and its competitors. President-elect Donald Trump has promised to end consumer tax credits, which effectively lower vehicle prices by up to $7,500. Sticker prices remain stubbornly high compared to traditional gas-powered options.
Many consumers have turned to hybrids over pure EVs. Hybrids can offer many of the gas savings and environmental benefits for cheaper and without any lifestyle changes.
Ominous signals in the market haven't shaken Musk, however, who has repeatedly hyped autonomy as the latest competitive edge for Tesla — and said buying any other car would be a financial mistake.
In the coming year, Tesla has promised an autonomous "cyber cab" and a new, cheaper car model.
