Stocks of Tesla Slide as Fourth Quarter and Full Year Sales Fall Short of Expectations

Tesla Inc. announced on Thursday that it delivered 495,570 vehicles in the fourth quarter of 2024 and 1.789 million for the entire year, missing analysts' expectations and trailing slightly behind its 2023 total.

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The reported fourth-quarter deliveries came in below the FactSet consensus estimate of 498,000 vehicles. Similarly, Tesla's full-year deliveries fell short of the projected 1.793 million vehicles. The 2024 total also represents a slight decline compared to the 1.809 million vehicles Tesla sold in 2023.

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Tesla’s stock reacted negatively to the news, dropping 5.4% in early trading. The decline reflects investor concerns about the company’s ability to meet market expectations and sustain its growth trajectory.

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The majority of Tesla’s deliveries were comprised of the Model 3 and Model Y, with 471,930 units sold in the fourth quarter and a total of 1.679 million for the year. Other Tesla models accounted for 22,727 units in the fourth quarter and 94,105 for the full year.

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In addition to vehicle sales, Tesla deployed 11.0 gigawatt hours of energy-storage products in 2024, showcasing its continued focus on expanding its renewable energy offerings.

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Tesla is scheduled to report its fourth-quarter earnings after the market closes on January 29. Investors will be closely monitoring the results and guidance for 2025, especially in light of the delivery shortfall. The earnings report will likely provide additional context on Tesla’s performance, including updates on production, profitability, and future growth strategies.

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Elon Musk, Tesla’s Chief Executive Officer, has projected sales growth of 20% to 30% for 2025. However, this guidance has been met with skepticism by many Wall Street analysts, who view it as overly optimistic given current market conditions and competition in the electric vehicle (EV) sector.

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Despite the delivery miss, Tesla shares saw a strong performance in 2024, gaining over 60% for the year. Much of this rally occurred in the latter half of the year, driven by positive sentiment surrounding the unveiling of Tesla’s robotaxi. Additionally, the new Trump administration was perceived as a tailwind for Tesla's autonomous-vehicle initiatives, contributing to investor enthusiasm.

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The delivery figures highlight challenges for Tesla as it strives to maintain its leadership position in the increasingly competitive EV market. Rivals are ramping up production and innovation, putting pressure on Tesla to meet its ambitious targets. Meanwhile, the macroeconomic environment, including potential regulatory changes and shifting consumer preferences, adds further complexity to Tesla’s growth outlook.

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Tesla’s upcoming earnings report will be a key moment for the company, offering insight into how it plans to navigate these challenges and capitalize on opportunities in 2025.

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While its 2024 delivery performance fell short of expectations, the company’s robust energy-storage deployment and progress in autonomous vehicle technology indicate that it remains a major player in the EV and renewable energy sectors. Investors and analysts alike will be eager to see whether Tesla can realign with its growth ambitions in the year ahead.

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