Tesla Faces First Annual Sales Dip in Nearly a Decade

Tesla reported its first annual sales decline in almost a decade, with a 1.1% drop from 2023 sales figures. Increased competition, an aging lineup, and economic factors contributed to the slowdown. Analysts express mixed feelings about Tesla's future amid growing market competition and potential regulatory changes.

Tesla's global yearly sales have declined for the first time in nine years, despite a late 2.3% boost in the final quarter. Offers like zero percent financing and free charging weren't enough to offset early 2024's weak performance, indicating a challenging year ahead for the automaker.

The company, based in Austin, Texas, delivered 495,570 vehicles from October to December 2024, culminating in 1.79 million deliveries for the year, slightly down by 1.1% compared to 2023. This decline reflects a broader slowdown in global demand for electric vehicles.

Analysts point to Tesla's aging model lineup and increased competition from legacy and startup automakers in the U.S., Europe, and China as key factors. These challenges come as infrastructure and range concerns linger for consumers considering electric vehicles.

(With inputs from agencies.)