Tesla experienced its first annual sales decline in its history in 2024, as a surge of electric vehicle models from competitors in China, Europe, and the United States intensified competition and offered buyers more choices.
The company delivered 1,789,226 vehicles globally in 2024, a slight decrease from the 1,808,581 delivered in 2023. While fourth-quarter deliveries reached a record 495,570, surpassing the previous quarter’s 484,507, they were insufficient to offset sluggish sales earlier in the year.
The vast majority of Tesla deliveries in Q4, 471,930 units, were its Model 3 and Model Y vehicles, its more affordable mid-range offerings. It delivered 23,640 units of its Model S and Model X vehicles.
For the year, Tesla delivered 1,704,093 Model 3 and Model Y vehicles and 85,133 Model S and Model X vehicles.
Q4 2024
| Production | Deliveries | |
| Model 3/Y | 436,718 | 471,930 |
| Other Models | 22,727 | 23,640 |
| Total | 459,445 | 495,570 |
2024
| Production | Deliveries | |
| Model 3/Y | 1,679,338 | 1,704,093 |
| Other Models | 94,105 | 85,133 |
| Total | 1,773,443 | 1,789,226 |
Tesla, under the leadership of Elon Musk, pioneered the electric vehicle market with the 2017 launch of the Model 3, a car that redefined affordability, performance, and range for mainstream consumers. While Tesla still holds a significant market share in the United States, its dominance is facing a formidable challenge.
Competitors like BYD in China, along with General Motors, Kia-Hyundai, Volkswagen, and BMW, have launched numerous electric models with competitive pricing and innovative designs. BYD, rapidly closing the gap with Tesla in global EV sales, reported 1.76 million electric vehicle sales in 2024, up from 1.6 million in 2023. Unlike Tesla, BYD also sells popular plug-in hybrids in China, with sales surging from 1.44 million in 2023 to 2.49 million in 2024.
Industry data and analyst estimates indicate that Tesla’s sales declined in the United States, Europe, and China during the first nine months of the year. This occurred despite a 25% global increase in overall electric vehicle sales during the first 11 months of 2024, according to research firm Rho Motion.
Despite the sales dip, investors have largely remained unfazed, focusing instead on Tesla’s ambitious autonomous driving technology and long-term projects like humanoid robots, which are not expected to contribute significantly to revenue in the near future.
