How will Tesla overcome these issues in 2025 considering all the Chinese EV competition?
Tesla’s stock experienced a sharp decline to start 2025, following a disappointing fourth-quarter delivery report and a generally challenging year for the electric vehicle (EV) manufacturer. The company revealed that it delivered 495,930 vehicles globally in the fourth quarter, falling short of analyst expectations, which had predicted around 510,400 vehicles, according to Bloomberg.
While this figure was an improvement over the 463,000 vehicles delivered in the previous quarter, it was only a slight increase from the 484,500 vehicles delivered during the same period the previous year. In total, Tesla delivered 1.78 million vehicles in 2024, missing the analyst consensus estimate of 1.8 million.
Moreover, this marked a year-over-year decline, as Tesla had delivered 1.8 million vehicles in 2023. It was the first time the company reported a drop in vehicle deliveries year over year, signaling that factors like intensifying competition, changing demand, and broader global economic conditions may be negatively impacting Tesla’s performance.
In response to the disappointing results, Tesla’s stock dropped by more than 6 percent on Thursday. The news of a year-over-year decline in deliveries caught many investors by surprise, especially given that the brand had previously reported a 50 percent compound annual growth rate (CAGR).
Though Tesla had also cautioned in 2024 that its volume growth rate might be lower than the record growth seen in 2023 due to preparations for the launch of its next-generation vehicle at Gigafactory Texas, investors did not expect an overall decline in deliveries. Meanwhile, BYD reported global deliveries of approximately 4.3 million passenger cars for 2024.
On top of that, of this total, around 2.5 million were hybrids, but the company’s pure EVdeliveries amounted to roughly 1.76 million, closing in on Tesla’s delivery numbers. This shift marks a reversal from past trends and highlights the growing competitive pressure the American EV brand faces in the EV market.
Despite the challenges, many Tesla bulls remain optimistic about the company’s future. Wedbush analyst Dan Ives expressed confidence in Tesla’s ability to accelerate its growth in 2025, projecting delivery growth of 20 percent to 30 percent as the company prepares to launch a lower-priced EV.
Ives also pointed to the growing adoption of Tesla’s Full Self-Driving (FSD) software, the rollout of robotaxi testing, and future products like the Cybercab as key drivers for the company’s market cap, potentially pushing it to $2 trillion or more. Despite the weaker fourth-quarter delivery numbers, Ives encouraged investors to view any stock sell-off as a buying opportunity.
We got all this from Yahoo Finance and their full article is linked here. Thank you Yahoo Finance for the information and images.
